Supply chain finance for healthcare providers

• Cash flow challenge: Healthcare providers often face long NHS or private sector payment cycles while needing to purchase and deliver essential medical supplies on time.

• Perfect for: NHS suppliers, medical device manufacturers, healthcare logistics firms, and private clinics managing large procurement costs or delayed client payments.

Novuna helps healthcare providers unlock working capital and maintain resilient supply chains through flexible supply chain finance solutions, either through our award-winning in-house service or by comparing the market to ensure you have a great deal for your situation.

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Strengthen your healthcare supply chain with flexible finance

Healthcare organisations rely on reliable supply chains to deliver vital medicines, medical equipment, and consumables. Yet, delays in payment from large hospital groups or public sector bodies can strain liquidity.

Supply chain finance bridges that gap by advancing payments to suppliers once invoices are approved, ensuring smooth cash flow throughout every stage of the procurement process.

• Pay suppliers promptly and strengthen relationships.

• Secure essential equipment and stock without disruption.

• Improve working capital management for day-to-day operations.

• Support patient care with uninterrupted access to materials.

How supply chain finance works in the healthcare industry

1. Buyer approves an invoice from a trusted supplier (for example, an NHS Trust or private hospital).
   
   
2. The supplier receives early payment from the finance provider, usually within 24–48 hours.
   
   
3. The buyer pays the finance provider later, based on agreed credit terms.

This system means suppliers don’t need to wait for lengthy approval processes before accessing their money. For healthcare providers and manufacturers, it ensures reliable access to critical goods while improving liquidity across the sector.

Benefits of supply chain finance for healthcare providers

• Faster supplier payments: Improve relationships and supply reliability.

• Enhanced liquidity: Maintain consistent cash flow through procurement cycles.

• Improved working capital: Free up funds to invest in clinical operations or new contracts.

• Reduced financing costs: Access lower-cost funding tied to buyer creditworthiness.

• Operational resilience: Keep medical supplies, logistics, and equipment moving seamlessly.

• Sustainability and transparency: Support ESG goals through traceable, efficient supply chains.

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Comparing supply chain finance and invoice finance

• Supply chain finance focuses on the buyer–supplier relationship, helping suppliers get paid early once invoices are approved.

• Invoice finance is supplier-led, releasing cash tied up in unpaid invoices from multiple clients.

• Both enhance cash flow, but supply chain finance is often suited to larger healthcare frameworks or NHS contracts, while invoice finance supports smaller suppliers and service firms.

How Novuna Business Cash Flow can help

We’ve helped healthcare providers, equipment suppliers, and service partners across the UK access fast, flexible funding to support procurement and cash flow stability.

Speak to our experts today and we will help you find a great fit for your situation.