Healthcare Factoring and Funding

Businesses within the healthcare, medical, and pharmaceutical sectors often require finance to overcome unforeseen challenges and help them grow. Political, budgetary and policy factors can all put a strain on the finances of firms in the healthcare sector, which is why having a fast, reliable and affordable source of working capital is so beneficial.

At Porter Capital, we can provide quick access to a range of business funding solutions that are specifically suited to healthcare providers. Whether it’s factoring to turn unpaid invoices into cash or working capital loans to plug short-term gaps in cash flow, we have the funding solutions to help you grow.

What can Healthcare Funding be used for?

The finance requirements in the healthcare and medical sectors are very different from the demands that other commercial industries face. That’s why it’s so important that healthcare businesses work with a finance provider who understands their specific requirements and has solutions that support them.

Having been founded in 1991, we have more than 30 years of experience providing financial products for healthcare companies that need working capital to achieve their goals. That includes:

  • Cash flow finance for government contracts

  • Funding for expensive medical equipment and stock

  • Investment in IT infrastructure and systems

  • Capital for practice refurbishment

  • Funding for practice/partner buyouts

  • Financing the cost of winning new business

  • Funding for expansion or purchasing a new practice

Funding Solutions for Healthcare Companies

In our experience, we have found that most healthcare finance requirements can be met by three funding solutions: working capital loans, invoice factoring, and asset-based lending. 

1. Working capital loans 

Working capital loans are a convenient source of finance for everything from covering day-to-day expenses to making refurbishments and maintaining your cash flow when you have an unexpected expense or a low-income month. 

This type of healthcare business funding is not suitable for long-term investments. Instead, it is a fast and flexible way to achieve your short-term financial goals. 

2. Invoice factoring

Invoice factoring allows healthcare companies to effectively sell their outstanding invoices to a finance provider to turn them into cash. One of the greatest challenges for companies in the healthcare industry is the length of time it takes for insurance claims to be paid. Rather than waiting up to 120 days for payments to be made, healthcare providers can receive up to 90% of the value of their invoices within as little as 24 hours.  

Unlike a secured loan, this type of funding removes the burden of debt from the healthcare company, as the finance provider recovers the value of the invoice from the end customer. It’s also a scalable form of funding, as the value of the advance payment healthcare businesses will receive increases in line with their invoices. 

3. Asset-based lending

Asset-based lending is an effective way to invest in your healthcare business, whether it’s by fitting out new premises or buying high-value medical equipment. Asset-based lending involves taking out a loan or line of credit that’s secured against the assets you own. That could be physical assets such as medical equipment and vehicles or liquid assets such as your accounts receivable. 

You can use asset-based lending to meet working capital requirements, fund your growth, or refinance your existing debt. This type of funding facility is typically very flexible and has a lower barrier to entry than commercial loans. That makes it a viable option for smaller healthcare businesses and firms with less than perfect credit records.   

The Healthcare Factoring and Funding Experts

When you need factoring or funding for a healthcare business, it pays to work with the experts. At Porter Capital, we have tailored funding solutions for businesses ranging from family-owned healthcare providers and small private clinics to large hospital groups and care homes.

We are renowned for providing some of the most competitive rates in the healthcare sector combined with a quick approval process and unbeatable customer service. Just get in touch to discuss your healthcare funding requirements with our team.