Term lending and working capital for practices and healthcare businesses, for the things that are not a property purchase or a piece of equipment.
What these are used for
- Working capital and cash flow smoothing
- Refurbishment, fit-out and additional treatment rooms
- Recruitment and expansion costs ahead of the revenue arriving
- Tax, VAT and professional indemnity, spread rather than paid in one hit
- Consolidating or restructuring existing borrowing
- Deposit contributions towards a larger acquisition
Unsecured or secured
Unsecured lending takes no charge over property or equipment. It is quicker to arrange, well suited to smaller amounts and shorter terms, and usually carries a higher rate to reflect the lack of security. Personal guarantees are common.
Secured lending takes a charge over commercial property or business assets, which brings the cost down and allows larger amounts over longer terms. It takes longer to complete because of valuation and legal work.
Which is right depends less on preference than on what you are funding and how long you need it. Funding a five-year investment on a two-year facility creates a problem later.
Indicative terms
- Professions lending: £30,000 to £500,000 standard, growth facilities to £2m, rates from around 8%, unsecured, for regulated practices including doctors, dentists, opticians and pharmacies. This is usually the right starting point for a practice.
- General unsecured: from £1,000 to £1m depending on funder, terms to 60 months. Limits are commonly sized at around one month’s revenue, so a practice turning over £40,000 a month should expect a facility in that region rather than a multiple of it.
- Newer practices: facilities available from around six months’ trading with monthly turnover from £5,000.
- Secured: £50,000 to £750,000 over 6 to 60 months, or up to £5m from asset-based funders.
- Tax, VAT and PAYE: dedicated facilities exist to spread these rather than taking them from practice cash in one month. Genuinely useful for partnerships and inexpensive relative to the disruption avoided.
Sole traders and small partnerships: lending of £25,000 or less to a sole trader, or to a partnership of two or three partners, is regulated consumer credit even when used for business. We cannot arrange those. Limited companies and LLPs are not affected, and nor is lending above £25,000.
Tax and professional indemnity funding
A specific and useful facility: rather than a large tax or indemnity payment coming out of practice cash in one month, it is spread across the year. For partnerships in particular this smooths a predictable but awkward pressure point, and it is inexpensive relative to the disruption it avoids.
How lenders assess healthcare businesses
Practices with NHS or Health and Social Care contract income are viewed favourably, because that income is predictable and government-backed. Private-pay businesses are assessed on trading consistency. Either way, lenders will look at your accounts, your bank conduct and any existing borrowing, and for a practice, at the stability of the clinical team delivering the income.
Common questions
How much can we borrow unsecured?
It is generally linked to turnover and profitability, and the ceiling is well below what secured lending can achieve. Where you need more than unsecured lending offers, a secured or asset-backed structure is usually the answer.
Will a personal guarantee be required?
Often, for unsecured lending. A guarantee is not the same as a charge over your home, and the distinction is worth understanding before you sign.
Can a newly acquired practice borrow?
It is harder immediately after an acquisition, because the existing borrowing is fresh and there is no trading history under your ownership. Asset finance is frequently the more realistic route in the first year.
All figures are indicative and subject to lender assessment, your circumstances, valuation and prevailing market conditions. Commercial mortgages and unregulated bridging loans are not regulated by the Financial Conduct Authority. Property offered as security may be at risk if you do not keep up repayments.
This page was last reviewed in September 2026 and is next scheduled for review in March 2027. Lending criteria change frequently, so contact us for current terms rather than relying on published figures.