Summary — can health‑tech SMEs access working capital or equipment finance?

Short answer: Yes. Most health‑tech SMEs that are revenue‑generating can access working capital and equipment finance through the UK market. Options include asset finance (leases, hire purchase), working capital loans, invoice finance and sale & leaseback. Eligibility and cost depend on company trading history, turnover, contracts (e.g. NHS/clinic orders), equipment type and collateral. To compare what you can qualify for quickly, Get Quote Now — Free Eligibility Check.

Why health‑tech SMEs need finance

Health‑tech companies and medical suppliers commonly need funding for:

• Buying or leasing capital equipment (imaging, lab devices, diagnostic machines).
• Working capital to cover long NHS or private sector payment cycles and delayed procurement.
• Scaling manufacturing and distribution to fulfil large orders.
• R&D, regulatory compliance (software validation, clinical trials) and certification costs.
• Fit‑outs, premises, and vehicle fleets for service engineers.

Procurement cycles (frameworks, tendering, NHS payment terms) can create predictable cash‑flow gaps. Strategic finance turns illiquid assets or slow receivables into working capital so you can grow without diluting equity.

Free Eligibility Check — see options matched to your business in hours.

What finance options are available to health‑tech SMEs

Asset & Equipment Finance

How it works: Lenders fund the purchase of equipment and you pay back via lease or hire purchase. Typical terms: 2–7 years. Deposit options vary.

Suitable for: Imaging devices, lab machines, clinical hardware and specialist production kit. VAT treatment differs by product and contract.

Pros/cons: Conserves working capital; often cheaper than unsecured loans. Contracts may include maintenance obligations and end‑of‑term options (own, extend or return).

Documentation: equipment quotes, supplier invoice, business accounts, ID for directors.

Working Capital Loans

How it works: Short or medium‑term term loans (secured or unsecured) to cover payroll, stock, or growth. Amounts: typically from £10,000 upwards.

Suitable for: bridging procurement delays, hiring, or scaling sales teams.

Pros/cons: Flexible use, faster to arrange; unsecured loans usually cost more and may require personal guarantees or charges for larger amounts.

Invoice Finance & Factoring

How it works: Lenders advance a percentage of outstanding invoices (advance rate), then collect or manage invoices until customer payment.

Suitable for: NHS or B2B suppliers with sizeable invoice windows—especially where receivables are the main asset.

Pros/cons: Immediate cash boost tied to sales; ongoing costs and fees. Non‑recourse options exist but are pricier.

Asset Refinance / Sale & Leaseback

How it works: Sell owned equipment to a funder and lease it back to release capital held in assets.

Suitable for: high‑value devices where capital is tied up but continued use is essential.

Specialist Healthcare Lenders & Broker Networks

How it works: Brokers and lenders specialise in medical & healthcare sectors and understand procurement delays, warranty issues and regulatory timetables.

Typical eligibility indicators across products: trading history (usually 12+ months preferred), turnover, management experience, contract pipeline or purchase orders, and the condition/value of equipment.

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Can start‑ups and early‑stage health‑tech firms get funding?

Yes — but routes differ depending on whether you are pre‑revenue or revenue‑generating.

If you are revenue‑generating (supplying clinics, private hospitals or NHS frameworks), you can access asset finance, invoice finance and working capital loans more easily — especially with pilot contracts or PO evidence.

Pre‑revenue start‑ups often rely on equity, grants, convertible loans, venture debt or specialist start‑up lenders. Grants (Innovate UK, local health innovation funds) can be blended with loans to reduce dilution.

Practical improvements to eligibility: secure pilot contracts, provide credible forecasts, evidence of regulatory progress (MHRA/UKCA), and clear commercial partnerships.

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Typical lender requirements & how decisions are made

Lenders and brokers assess credit history, management experience, business accounts, cash‑flow, contracts/purchase orders and the value of any asset used as security.

Security: for larger amounts lenders commonly require fixed charges over equipment, personal guarantees from directors, or property security. Invoice finance relies on the quality of your debtor book.

Timeframes: quick decisions (hours to a few days) for simple asset finance or invoice facilities; more complex secured term loans can take 1–3 weeks or longer depending on due diligence.

Note: submitting an enquiry to us does not directly affect your credit file. Lenders may carry out credit checks only if you proceed with an application.

Pricing, costs and things to watch out for

Costs vary widely by product and risk. Typical patterns:

• Asset finance: often lower headline rates because the equipment is security; fees and maintenance obligations can add to cost.
• Invoice finance: fees + discount rate; advance rates typically 70–90% depending on debtor quality.
• Unsecured working capital: higher rates, arrangement fees, early repayment charges may apply.

Watch for hidden costs: maintenance responsibilities in lease agreements, early repayment penalties, VAT treatment and administration fees. Always get a full illustration of total cost over the term.

UK Business Loans does not set rates — actual terms are determined by the lender or broker who contacts you.

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How UK Business Loans helps health‑tech SMEs

Our service is designed to be fast and low friction:

1. Complete a short enquiry (≈2 minutes) and tell us the type of finance you need and the amount (we typically match loans from £10,000 upwards).
2. We match your enquiry to specialist lenders and brokers with healthcare experience.
3. Receive rapid contact from matched partners to discuss options and quotes — no obligation to proceed.

Benefits: sector‑specific matching, multiple options to compare, secure handling of your data and a single point of contact to speed responses.

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Short anonymised case examples

Equipment finance: An imaging start‑up leased a £120,000 scanner using vendor‑friendly asset finance and was operational within 10 days. Lease payments matched projected contract receipts.

Invoice finance: A diagnostics supplier used invoice factoring to unlock £75,000 tied up in private clinic invoices and met a large distribution order without taking on equity.

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Practical checklist: prepare before you apply

• Most recent accounts (or management accounts), bank statements and VAT returns (if VAT registered).
• Cash‑flow forecast and business plan or sales pipeline.
• Supplier quotes and equipment specification sheets.
• Purchase orders, framework or tender award letters, and customer contracts.
• Proof of ID for directors and company registration details.

Do: be open about existing debts and realistic with forecasts. Don’t: withhold material information — it slows the process and harms outcomes.

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FAQs

Can we finance second‑hand medical equipment?

Often yes. Many lenders accept used equipment depending on age, condition, remaining life and market value. Provide valuation and maintenance history to improve offers.

Will an enquiry affect our credit score?

No — submitting our enquiry form does not directly affect your credit file. Lenders or brokers may perform credit or identity checks only if you progress to an application.

How long does equipment finance take?

Simple asset finance deals can complete in days to two weeks. Complex transactions or secured loans may take longer due to valuations and legal checks.

Do lenders fund devices awaiting MHRA/UKCA approval?

Some lenders will consider finance where regulatory approval is near and commercial contracts justify the risk, but many prefer equipment already authorised. Be transparent about regulatory status.

What if we have imperfect credit?

Imperfect credit doesn’t automatically rule you out. Specialist lenders and brokers consider the full picture — collateral, contracts and management strength can offset credit history in some cases.

Are there lenders for NHS suppliers?

Yes — several lenders and broker partners understand NHS procurement cycles and will consider supplier finance where credible POs or framework placements exist.

Is UK Business Loans a lender?

No. We introduce businesses to lenders and brokers who can provide finance directly.

What fees does UK Business Loans charge?

Our service is free for business owners. Any fees or commissions are disclosed by the lender or broker when they present an offer.

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Ready to see what your health‑tech business could access?

Find out in minutes which lenders and brokers are likely to support your working capital or equipment needs. Complete a short enquiry and we’ll match you to the most relevant partners — free and no obligation.

Get Quote Now — Free Eligibility Check

Final note: We are not a lender or regulated financial adviser. We introduce businesses to lenders and brokers. Actual offers, rates and eligibility are decided by the lender or broker who contacts you. Submitting an enquiry does not itself affect your credit score.

Useful links & further reading

• UK Business Loans — homepage
• Asset finance (internal)
• Invoice finance (internal)
• healthcare business loans (industry overview)
• GOV.UK — Guidance for NHS suppliers
• British Business Bank — finance guides