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Supplier Chains within the Healthcare Industry: How Invoice Finance can provide a real cashflow boost

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    Last Modified : Jul 03, 2024

    In the ever-expanding healthcare industry, there is a high demand for essential supplies to accommodate the rising aged population and deliver services effectively. Following increased associated costs such as staffing, equipment, and PPE admin, the pressure of meeting deadlines and managing payments has continued to build significantly.

    This directly impacts businesses in the supply sector, which work with healthcare industries such as the NHS to deliver the various products they need.

    With customers extending their payment terms and changes in the health and social care framework causing impactful delays in third-party payments, suppliers’ cash flow has been significantly disrupted. As they try to adapt to this changing environment, meeting supply demands and pressure to provide volume discounts to larger buyers are further straining their finances. Along with these, the long-term lasting effects of the pandemic areas still leaving their mark in terms of staff shortages and expensive shipping costs.

    As a reliable funder in the healthcare industry, eCapital is instrumental in supporting businesses and to ensure their financial stability. We have a deep understanding of the unique challenges that a business will face, and we use this knowledge to provide the funding to maintain a smooth collaboration between client and its suppliers and customers.

    With our flexible finance solutions, we aim to gain, maintain, and protect a business’s cash flow so it can move forward with confidence.

    Gain and Maintain: We provide immediate funding against outstanding sales invoices, injecting cash into your business to alleviate financial pressure. Furthermore, our ongoing funding through our invoice discounting and invoice factoring solutions, further releases cash as invoices are created, providing your business with the working capital surety to meet your obligations and maintain control.

    Protect: With the new changes to the healthcare framework agreement, one preferred company is used by a local authority that then outsources its staff or supplies through third parties.

    This chain system often means that no one else is paid until the first company; therefore, if one of the customers were to become insolvent, it could cause a dangerous ripple effect on the companies below.

    This is where our debtor protection solution can safeguard a business. In the event of non-payment or other emergencies, our inclusive debtor protection ensures that a business will receive payment for goods and services supplied, protecting its long-term cash flow.

    A manufacturer and supplier of sanitation products to healthcare businesses recently shared their experience working with us. When their previous lender restricted their debtor concentration levels to 20%, by assigning the client’s existing BDP policy from a third-party provider to eCapital, we were able to fund all insured debt to 100% concentration, which drastically improved their cashflow.

    Our provision of a bespoke and flexible £250k finance facility immediately equipped the business with the freedom and control needed to carry on essential growth and seize new opportunities.

    Contact us today to discover how our fast finance solutions and personable approach can help you continue to meet your client’s expectations and thrive in the demanding healthcare sector.

     

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    eCapital Commercial Finance (eCapital) is a leading invoice financier providing funding facilities up to £4m to support the growth of SMEs through the provision of flexible working capital facilities. With five fully functional UK regional offices, its local teams are uniquely placed to respond promptly and purposefully to the cashflow needs of its clients. The business has grown significantly since its launch in 2001, providing over £4 billion of funding to businesses. It is majority owned by eCapital, a US based financial services business with interests in the USA and Canada.

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