How Hammond Rock Helped Fund a Mental Health Clinic’s Rapid Expansion

Winning a new NHS contract can be a transformative moment for a growing healthcare provider. It often brings the opportunity to expand services, reach more patients, and significantly increase revenue. However, with that growth can come real financial pressure – particularly when additional clinicians need to be hired quickly and payments from the NHS can take longer than expected to arrive.

Here’s how the right funding solution helped turn a cash flow challenge into a growth opportunity.

Client Overview

A London based private mental health clinic specialising in assessments for children and young adults had built a strong reputation in the sector and secured a significant new contract with the NHS.

• Turnover: £600,000
• New Opportunity: NHS ADHD assessment contract
• Projected Revenue: £2.5m+ annually

The Challenge

To deliver the new contract, the clinic needed to scale its team quickly, including hiring additional clinicians and expanding its operational infrastructure. However, several cash flow challenges arose:

• The NHS payment terms were 30 days, but in practice payments were typically received 45–50 days after invoicing
• Significant upfront costs were required for clinicians and payroll
• Their existing bank was unable to move quickly enough, requesting a full paper trail including redacted assessment reports before considering funding

This created a working capital gap, risking delays in delivering the new contract.

Our Solution

We arranged a £500,000 invoice factoring facility which allowed the clinic to unlock cash immediately from NHS invoices.
Key features included:

• 85% of invoice value advanced immediately
• Facility set up within 7 working days
• No security taken over personal property or assets
• Facility designed to scale alongside the clinic’s growth

This allowed the business to bridge the cash flow gap between delivering services and receiving NHS payments.

The Outcome

With the facility in place, the clinic was able to rapidly scale its operations and begin delivering services under the new NHS contract.
Results included:

• 20 additional clinicians hired
• Immediate support for payroll and operational costs
• Ability to deliver assessments without cash flow pressure
• A funding facility that will grow alongside the projected £2.5m+ turnover

Invoice factoring provided the clinic with reliable working capital from the point of invoicing, enabling them to focus on delivering services rather than waiting for payments.

Key Takeaway for Healthcare Providers

Many healthcare businesses working with the NHS face delayed payments and rising staffing costs when scaling contracts.
Invoice finance can provide fast access to working capital, helping clinics:

• Hire clinicians sooner
• Support payroll during growth
• Deliver new NHS contracts confidently