Invoice finance for healthcare & care providers — can you fund NHS & local authority invoices?

Short answer: Yes — many healthcare and care providers can use invoice finance to unlock cash tied up in unpaid NHS or local authority invoices. Funding depends on the contract terms (especially assignment clauses), invoice status (must be valid and undisputed), the specific public buyer’s payment profile and the lender’s policy. UK Business Loans does not lend; we match NHS and local-authority suppliers with specialist brokers and lenders who understand public-sector receivables. The enquiry form is just that — information we use to match you with the best providers; it is not a loan application.

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Who this page is for

This guide is written for operators and finance decision-makers in healthcare and social care who invoice public bodies, including:

• Care homes and nursing homes
• Domiciliary/homecare providers
• Private clinics, community health providers and private hospitals with NHS contracts
• Supported housing and social care service providers with local authority contracts
• Medical suppliers and service contractors to NHS trusts, ICBs or councils

We do not arrange funding for sole traders or very small facilities below the lenders’ thresholds; UK Business Loans typically helps businesses seeking facilities from around £10,000 and upwards.

Quick answer — can NHS/local authority invoices be funded?

Yes — often. Public-sector invoices (NHS trusts, Integrated Care Boards, clinical commissioning groups, and councils) are attractive to many invoice finance providers because public bodies are generally reliable payers. That said, funding hinges on:

• Contract terms — whether the contract permits assignment of payments
• Invoice status — invoices must be valid, submitted correctly and undisputed
• Lender policy — some lenders specialise in public-sector receivables, others favour private-sector invoices
• Concentration — lenders may limit exposure if a large share of your turnover comes from a single public buyer

If you want to know fast whether your invoices are likely to be fundable, complete a short, no-obligation enquiry and we’ll match you with lenders/brokers who specialise in healthcare and public-sector invoice finance: Get Quote Now — Free Eligibility Check.

What lenders and brokers will check before funding

Lenders perform both legal and commercial due diligence. The key areas they focus on are:

Contract & assignment rights

• Many NHS and council contracts include “no assignment without consent” clauses. Lenders will need to see whether the supplier can legally assign invoices or whether the buyer’s written consent is required.

Buyer creditworthiness & payment patterns

• Which NHS Trust, ICB, or council is the payer? Lenders assess the specific public body’s payment record and the likely timing of settlement.

Invoice status & disputes

• Only unpaid, undisputed invoices (or those beyond retention periods) are eligible. Any query or planned set-off on the invoice will usually prevent funding.

Documentation & KYC

• Expect to provide contracts, copies of invoices, proof of supply/services, company bank statements, director IDs and VAT returns. AML checks and basic KYC are mandatory.

Concentration risk and service continuity

• Lenders typically limit exposure where one buyer represents a high proportion of turnover. Ongoing contracts and renewals increase lender confidence.

Invoice finance options suitable for healthcare providers

There are several structures used by healthcare suppliers:

• Factoring — the funder buys your invoices, often handles collections and offers a full ledger service. Useful when you want turn-key cashflow support.
• Invoice discounting — you retain control of collections while borrowing against unpaid invoices; this keeps funding confidential from buyers.
• Selective / spot factoring — fund only chosen invoices (for example, those to public bodies), leaving other debtors untouched.
• Blended facilities — lenders may combine invoice finance with asset-backed lending or short-term business loans to suit mixed needs.

Want to learn more about core invoice finance products for your sector? See our detailed guide to invoice finance and how it works: invoice finance.

Typical terms & costs to expect

• Advance rates: often between 70% and 95% of invoice value, depending on the buyer and contract assignment — public invoices can attract higher advances.
• Fees: arrangement fees, ongoing service fees (management or admin fees) and interest on drawn balances. Examples vary widely — always get multiple quotes.
• Reserve/holdback: some lenders retain a portion (e.g. 5–10%) until the invoice is fully paid.
• Set-up: onboarding and legal checks can incur a one-off cost; complexity (buyer consent, contract review) increases this.

Pricing is lender-specific and depends on contract risks, buyer strength and concentration — brokerage can help you compare realistic offers.

Assignment & contract clauses — what to look for

Assignment language in public contracts is the most common legal hurdle. Watch for:

• “No assignment without consent” — lenders will normally require evidence of buyer consent to fund.
• Retention or staged payment clauses — these reduce the immediately fundable invoice value.
• Set-off and penalty provisions — can complicate collections and reduce lender appetite.

If your contract restricts assignment, options include seeking written consent from the buyer (some public bodies will grant this to named lenders) or using selective funding only on invoices where assignment is allowed. Specialist brokers often negotiate or advise on the best workaround.

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Real-world process — how a healthcare provider secures invoice finance (step-by-step)

1. Enquire: you complete a short enquiry so we can understand your invoice profile and needs (this is not a formal application).
2. Match: UK Business Loans introduces you to brokers and lenders experienced in healthcare/public-sector receivables.
3. Due diligence: lender reviews contracts, invoices and KYC documents.
4. Offer: lender issues terms (advance rate, fees, reserves).
5. Onboarding: sign facility documents; if buyer consent is required the lender/broker may approach the public buyer.
6. Funding: funds are released against eligible invoices — often within days for straightforward cases.

Common pitfalls & how to avoid them

• Attempting to fund disputed invoices — lenders will refuse; resolve disputes first.
• Ignoring assignment clauses — get contracts checked early.
• Relying on a single buyer for most turnover — expect concentration limits or reduced advances.
• Not preparing KYC and trading documents — delays in onboarding cost time and money.

Alternatives if invoice finance isn’t available

If assignment is blocked or public buyer consent is refused, other options include:

• Unsecured or secured business loans (may require security or directors’ guarantees)
• Asset finance (release funds tied up in equipment)
• Short-term bridging facilities — typically more expensive, use for one-off gaps
• Supplier / supply-chain finance arrangements (rare with public buyers)

Our network of brokers can advise on the optimal mix of finance for your circumstances.

Compliance & transparency — what UK Business Loans does (and doesn’t)

• We are an introducer — we do not lend or provide regulated financial advice.
• We match businesses to brokers and lenders from our vetted panel who have experience funding public-sector invoices.
• Our enquiry form is for information only and used to find the most appropriate lenders/brokers; it is not a loan application.
• We typically help businesses seeking facilities of £10,000 and above.
• All offers are subject to the lender’s assessment and due diligence; we cannot guarantee funding.

Get Quote Now — Free Eligibility Check

Frequently asked questions

Can my care home get funding against an invoice from an NHS Trust?

Yes — provided the invoice is valid, undisputed and either the contract allows assignment or the NHS Trust consents to assignment. Lenders will review the contract and may request buyer consent.

Will a lender fund invoices from an Integrated Care Board (ICB) or CCG?

Often yes. Lenders assess which public body is the payer and its payment behaviour. Some NHS bodies are straightforward; others require additional checks or consent.

What if my contract says “no assignment”?

Many lenders will not fund without written buyer consent. Some public bodies will grant consent for a named lender; if they refuse, alternative finance options may be needed.

How long before I receive funds?

For straightforward invoices with clear assignment rights, funding can start within days of due diligence. Complex contracts or negotiations with the buyer extend timelines.

Will applying affect my credit score?

Submitting an enquiry to UK Business Loans does not affect your credit score. Lenders may undertake credit checks if you move to a formal application with them.

Are public-sector invoices cheaper to fund?

Not automatically, but they often attract higher advance rates and lower perceived credit risk. Fees and rates vary by lender — compare quotes.

Ready to check eligibility?

Complete a quick, no-obligation enquiry and we’ll match you with specialist brokers and lenders who understand NHS and local-authority contracting. The enquiry is for matching only — it’s not a formal loan application.

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Compliance note: UK Business Loans is an introducer and does not lend or provide regulated financial advice. Lending decisions, terms and costs remain with the lenders and brokers we introduce. Funding is subject to checks, contract terms and the lender’s approval.

1) Can NHS and local authority invoices be funded with invoice finance?
Yes — many NHS and local-authority invoices can be funded provided the invoices are valid, undisputed and assignment is allowed or the buyer consents, subject to the lender’s policy.

2) What types of invoice finance are best for healthcare and care providers?
Common options are factoring, invoice discounting, selective/spot factoring and blended facilities, chosen by whether you want confidential funding, collections handled, or only selective invoices funded.

3) How quickly can I receive funds against public‑sector invoices?
For straightforward invoices with clear assignment rights funding can often be released within days of due diligence, while complex contracts or buyer consent requests take longer.

4) What documents and checks will lenders require for public‑sector invoice funding?
Lenders typically ask for contracts, copies of invoices, proof of supply/services, bank statements, director IDs, VAT returns and will perform AML/KYC plus buyer credit/payment‑history checks.

5) What happens if my contract contains a “no assignment” clause?
You will normally need written consent from the public buyer to assign invoices, otherwise you may need alternative finance, selective funding on assignable invoices, or broker negotiation.

6) How much of an invoice value will lenders advance for NHS or council invoices?
Advance rates commonly range from about 70% to 95% depending on buyer strength, contract terms and concentration risk, with a typical reserve/holdback of around 5–10%.

7) Will submitting an enquiry via UK Business Loans affect my credit score?
No — completing an enquiry with UK Business Loans does not affect your credit score; lenders may run credit checks only if you progress to a formal application with them.

8) Can very small care providers or sole traders get invoice finance through UK Business Loans?
UK Business Loans generally helps businesses seeking facilities from around £10,000 upwards and may not arrange funding for sole traders or very small facilities below lenders’ thresholds.

9) Are public‑sector invoices cheaper or easier to fund than private invoices?
Public‑sector invoices are often seen as lower risk and can attract higher advance rates, but actual fees and pricing vary by lender and depend on contract complexity and buyer payment behaviour.

10) What exactly does UK Business Loans do and is the enquiry form a loan application?
UK Business Loans is an introducer that matches you with vetted brokers and lenders who specialise in public‑sector receivables, and the enquiry form is for matching only — it is not a formal loan application.