Supplying the NHS should mean dependable demand, but it doesn’t always mean dependable working capital. When Forma-Care (UK) Ltd saw its existing lender become more restrictive after sales landed below forecast, availability tightened at exactly the wrong time: stock still had to be bought, orders still had to be fulfilled, and service levels still had to be protected.
A focused model. A dependable ledger.
Founded in 2019, Forma-Care (UK) Ltd supplies adult incontinence products to the UK healthcare sector, selling through established relationships with purchasing departments and clinical nurses. The business’s debtor base is primarily the NHS.
Forma-Care’s range is designed to meet differing patient needs, structured across four main categories: Premium, Sensitive, Comfort and Easy – supporting healthcare teams with choice, consistency and clinically appropriate options.
Importantly, Forma-Care has structured itself to be 100% focused on the NHS, aligning its operational model to the demands of a high-volume, service-critical customer base.
When “safe” debt still squeezes working capital
Although the strategy and margins remained on track, sales to the NHS were lower than anticipated. In response, Forma-Care’s existing lender chose to reduce the pre-payment available – a decision that had an immediate knock-on effect on working capital.
That restriction quickly became critical: reduced funding limited the company’s ability to buy stock and fulfil NHS orders, placing pressure on day-to-day working capital at the very point reliability mattered most.
“When a lender tightens availability, it’s rarely just a funding issue – it becomes an operational issue. Forma-Care needed a funding partner that understood the rhythm of NHS trading and could provide the headroom required to keep stock flowing and orders fulfilled.”Sarah Harrison | Regional Director, Ultimate Finance
The key was not simply finding funding but finding the right fit for a business with a concentrated NHS debtor book. It needed a lender that would take time to understand the model, move quickly, and avoid adding further restriction at a sensitive point.
A facility built around trading reality
Ultimate Finance provided a £750,000 Invoice Finance facility, designed to increase accessible working capital and reduce the friction Forma-Care was experiencing with its previous provider.
The approach was simple: create greater access to cash and structure the facility around the realities of trading – including 100% concentration on NHS debt.
“A concentrated debtor book can make some funders nervous. Our job is to look beyond the headline and understand the quality of the ledger, the operational controls, and what the funding is actually enabling – in this case, continuity of supply into the NHS.”Sarah Harrison | Regional Director, Ultimate Finance
What we did differently
Ultimate Finance was able to maintain momentum and minimise disruption throughout the inter-factor transfer, while taking a commercial underwriting approach that aligned the facility to Forma-Care’s operational pressure points and helped the business purchase stock and fulfil NHS orders. Support also continued beyond completion, with dedicated Relationship Management in place to ensure the facility remains fit for purpose as the business evolves.
More headroom now. More growth next.
With the new facility in place, Forma-Care was able to relieve the immediate working capital pressure created by reduced availability from its previous lender, helping it maintain stock purchasing and fulfilment capability for NHS orders.
Looking ahead, Forma-Care’s plan is clear: remaining 100% focused on supplying the NHS and meeting its growth ambitions by targeting over £10m in revenue in the near term.
“This is exactly what invoice finance should do: keep business moving while management focuses on execution. As Forma-Care drives towards its next revenue milestone, we’ll stay close – making sure the funding continues to match the ambition.”Sarah Harrison | Regional Director, Ultimate Finance
Invoice Finance that keeps deals moving
If you’ve got a client whose cashflow is tied up in unpaid invoices – or a facility where the funding structure no longer fits – our Invoice Finance solutions can help you deliver quickly and confidently.
- Find out more about Invoice Finance: ultimatefinance.co.uk/invoice-finance
- Register as an introducer: ultimatefinance.co.uk/introducers
