Established UK care and healthcare businesses can access regional and sector grants, workforce funding, and government-backed finance such as the Growth Guarantee Scheme — with working-capital facilities (overdrafts, invoice finance) easing the gap between paying staff and receiving fees, and asset finance for equipment and premises. Eligibility for the scheme depends on the rules and lender, so confirm it; combine grants with finance where it helps.
Key takeaways
- Regional and sector grants and workforce funding can support care businesses.
- The Growth Guarantee Scheme may be available where eligible — confirm with a lender.
- Working-capital facilities bridge the gap between paying staff and receiving fees.
- Asset finance funds equipment; term loans can support premises investment.
- Grants often require match funding and combine with finance.
- Use your growth hub and a broker to find the right mix.
Care and healthcare businesses are vital and growing, but they face distinctive funding pressures — staffing and skills costs, the timing gap between paying staff and receiving fees, and investment in equipment and premises. Established businesses in the sector can meet these with a mix of government grants and government-backed finance. This guide explains what is available and how to access it.
Managing working capital
A defining challenge in care is the timing gap between paying staff — your largest, most regular cost — and receiving fees or payments. Two facilities help bridge it:
- Overdrafts provide flexible working capital for day-to-day pressures.
- Invoice finance, where eligible, releases cash from unpaid invoices, useful for businesses supplying the healthcare system on payment terms.
Both can be available under the Growth Guarantee Scheme, with a government guarantee that improves access.
In care, payroll comes before payment. Working-capital facilities like an overdraft or invoice finance keep operations smooth across that gap.
Funding equipment and premises
For capital investment, asset finance can fund equipment — spread over its useful life, with the asset as security — while government-backed term loans can support larger investments including premises or expansion. Capital grants may help where available, and a grant can fund part of the cost alongside finance. A broker can help structure the right facility for your investment.
Workforce and skills funding
Staffing and skills are critical in care and healthcare, and workforce and skills funding can support training and development. Availability varies, so check the business support finder, sector bodies and your growth hub for current schemes. Investing in skills, part-funded where grants allow, supports both quality of care and capacity.
A note on scheme eligibility
Eligibility for the Growth Guarantee Scheme depends on the scheme rules and the lender, and some sectors and uses can be restricted. Care and healthcare SMEs may be able to access it where eligible, but you should confirm eligibility with an accredited lender before applying. Regional and sector grants are designed for specific purposes and have their own criteria.
The funding routes at a glance
| Need | Best route |
|---|---|
| Day-to-day cash flow | Overdraft (GGS-backed, where eligible) |
| Payment-term gaps | Invoice finance (where eligible) |
| Equipment | Asset finance |
| Premises / expansion | Term loan; capital grants where available |
| Workforce | Skills and training funding |
Who is eligible and how to apply
Eligibility varies by programme and may depend on your size, location, type of service and project, with much support aimed at established businesses. To access funding: check your growth hub, the business support finder, sector bodies and regional programmes for grants; speak to accredited lenders or a broker about finance, working capital and asset finance; and plan match funding to combine grants with finance.
The bottom line
Established UK care and healthcare businesses can fund growth, equipment, premises and skills through a mix of regional and sector grants, workforce funding, and government-backed finance — with working-capital facilities easing the gap between paying staff and receiving fees, and asset finance funding equipment. Confirm scheme eligibility, use your growth hub and a broker, and combine grants with finance to build the funding your care business needs.
Frequently asked questions
What government funding is available for care and healthcare businesses?
Care and healthcare businesses can access regional and sector grants, workforce and skills funding, government-backed finance such as the Growth Guarantee Scheme, working-capital facilities, and asset finance for equipment and premises. The right mix depends on your needs and eligibility.
Can care businesses use the Growth Guarantee Scheme?
Eligibility depends on the scheme rules and the lender. Where eligible, care and healthcare SMEs may access the Growth Guarantee Scheme through accredited lenders for term loans, overdrafts, asset and invoice finance. Confirm eligibility before applying, as some sectors and uses can be restricted.
How do I fund care equipment or premises?
Asset finance can fund equipment (spread over its useful life, with the asset as security), while government-backed term loans can support larger investments including premises. Capital grants may help where available. A broker can help structure the right facility.
Is there workforce or skills funding for the care sector?
Workforce and skills funding can support training and development in care and healthcare, where staffing and skills are critical. Availability varies, so check the business support finder, sector bodies and your growth hub for current schemes.
How does working capital funding help care businesses?
Care businesses often face timing gaps between paying staff and receiving fees or payments. Overdrafts and, where eligible, invoice finance — available under the Growth Guarantee Scheme — help bridge these gaps and keep operations running smoothly.
Who is eligible for care and healthcare funding?
Eligibility varies by programme and may depend on your size, location, type of service and project. Much support targets established businesses investing in capacity, equipment or skills. Check each programme’s criteria.
Do care sector grants require match funding?
Often, yes. Many grants cover part of a project’s cost, with the business funding the rest, possibly with finance. Confirm the match requirement before applying.
Can I combine grants and finance in the care sector?
Yes, commonly. A grant might cover part of a project, with government-backed finance or asset finance funding the rest, subject to the rules and any subsidy limits.
Where do I find care and healthcare funding?
Check your local growth hub, the business support finder, sector bodies and regional programmes for grants, and speak to accredited lenders or a broker about finance and asset finance.
Is funding available for NHS suppliers?
Businesses supplying the healthcare system can use working-capital and invoice finance to manage payment terms, and government-backed finance where eligible. The specific support depends on your business and contracts.
Are care sector grants taxable?
The tax treatment depends on the grant’s nature and purpose. Confirm with your accountant, as it affects the net value.
How long does care sector funding take?
Grants involve an application and assessment process and take longer; finance such as asset finance or a government-backed loan can be quicker. Plan ahead, especially for grant-funded projects.
Can a broker help care businesses access finance?
Yes. A broker can help arrange government-backed finance, working-capital facilities and asset finance, and structure a package alongside any grant, tailored to the care sector’s needs.
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Get your free quoteThis article is general information, not financial advice. Eligibility, rates and terms vary by lender and your circumstances. The Loans Hub is a finance broker, not a lender.
