Finance to fuel your Healthcare business

Types of business loans for your healthcare business

Every medical business has different needs and reasons for wanting external funding. That’s why the type of finance that’s suitable for one business may not be suitable for another.

At Aurora Capital, we can find the best type of credit to finance your business’s needs. That’s why we provide various kinds of business loans for medical professionals, each option offering different borrowing limits and usage terms.

Asset finance

If your healthcare business wants to purchase new equipment but lacks the necessary funds, an asset finance agreement can help.

Asset finance helps businesses acquire new equipment or machinery by spreading the cost over time. Typically, the asset itself (like diagnostic equipment or specialist machinery) serves as collateral for the loan or leasing agreement.

It’s also possible to refinance your existing assets to release cash, but keep in mind that there are eligibility criteria related to the age and condition of the equipment.

Unsecured business loans

Unsecured business loans don’t require collateral, but they tend to have higher interest rates than secured loans because there is more risk for the lender.

If your healthcare business has no valuable assets or you don’t want to put them at risk, unsecured business loans can be a useful option.

This type of funding can be used for virtually any business purpose, such as increasing marketing efforts, buying new stock, or upgrading your operations.

Loan amounts can range from £10,000 to £500,000 and can be borrowed over a maximum of six years. Learn more about the differences between unsecured and secured business loans.

Merchant cash advance

Merchant cash advances are a financing option designed for healthcare businesses that need quick access to cash but with more manageable repayment terms.

Unlike traditional loans, the lender provides upfront cash in exchange for a percentage of future credit and debit card transactions. Therefore, this option is only available to businesses that take significant card payments.

Repayment is made through daily or weekly automatic deductions from your credit card sales until the loan is fully repaid. The higher the sales, the more you pay back, and the faster the loan is repaid.

Revolving credit facility

A revolving credit facility works in a similar way to a business overdraft and can provide your healthcare business with flexible access to finance whenever you need it.

This option is particularly useful for managing fluctuating cash flow, covering unforeseen expenses, or handling short-term costs without the commitment of a traditional fixed-term loan.

You can withdraw, repay, and reuse funds within your approved credit limit. As you withdraw funds, the available amount decreases, but it replenishes as repayments are made.

Interest is only charged on the amount you use, and typically accrues daily, so the sooner you repay, the less interest you’ll be charged. This makes revolving credit an efficient and economical option for managing healthcare business expenses.

How business finance can grow your healthcare business

Getting suitable finance can be crucial if you’re aiming to expand your services, manage cash flow, or respond effectively to unexpected circumstances.

There are several key ways healthcare finance can support and strengthen your practice, including:

Purchasing medical equipment

Medical practices and healthcare providers regularly require the latest equipment, whether it’s advanced diagnostic tools, specialist surgical instruments, or patient care technologies.

Asset finance, including hire purchase agreements, offers an effective way to fund essential equipment purchases without a large upfront investment. This means your practice can get the latest technology, improving patient care and efficiency.

Improve cash flow

Healthcare businesses can often face cash flow problems due to delayed insurance payments, fluctuating demand, or the high upfront cost of medical supplies.

A revolving credit facility provides flexible access to funds exactly when your business needs them. You can access funds to cover immediate costs such as payroll, medical supplies, and ongoing operational expenses. Money can then be repaid and reused as your income stabilises.

This flexibility helps maintain consistent cash flow, minimises the need for expensive short-term borrowing, and helps your healthcare practice effectively manage financial uncertainties.

Expanding your team

Investing in skilled staff, like nurses, medical specialists, or support technicians, can boost your healthcare business’s capacity and service quality.

With a bigger team, your practice can offer more services, reduce waiting times, and improve operational efficiency.

Building a strong, talented team can help your healthcare business grow sustainably, enhance your reputation, and attract more patients.

Choosing the right finance option

When choosing the right healthcare finance option, consider key factors such as:

• What you need the money for
• The amount you need and the repayment conditions
• Whether you are happy to use assets as security

If you’re uncertain about the most appropriate healthcare finance solution for your requirements, speak with one of our expert advisers today.