Pay-Per-Use Financing
Pay Per Use Funding
Developed in consultation with the Department of Health, Pay-Per-Use financing (PPU) allows for the utilisation of revenue budgets when stretched capital budgets are not available.
The SAF Pay-Per-Use PPU solution unlocks the option for NHS trusts to utilise Revenue Budgets for large Modern Methods of Construction projects or medical equipment – often leveraged to quickly enhance capacity, while following the principles of the IFRS 16 regulations.
For modular construction and medical equipment suppliers who are faced with an end user who doesn’t have the available capital budget to fund new investment, we begin with a detailed discussion with the supplier to establish a PPU solution for the NHS Trust or Health Board that removes the need for CDEL allocation to fund the project. Working alongside the implementation process, SAF undertakes a usage workshop with key stakeholders at the Trust/Health Board to identify robust usage levels and costs.
Once the project gets approval, the supplier does what they do best, ensuring the new facility is installed onsite within the desired timeframe. The final seal of approval is to recognise the full sale – then, the Trust can begin using its new facility or equipment.
By offering their NHS customer base an alternative procurement via Pay Per Use financing, modular construction suppliers can:
Pay Per Use Solution Process
Consultation
Tailored PPU Design
Usage Workshop
Implementation
When working with NHS Trusts, we take the time to understand individual requirements and key financial drivers to create a bespoke Pay-Per-Use solution for equipment and other options that ensures a positive outcome.
We collaborate closely with the Trust to provide all the required information, allowing them to produce a detailed business case for the required investment. This includes:
Then, the Trust is provided with access and can begin using their new facility or equipment. By investing in new facilities and equipment via a dedicated Pay-Per-Use solution, NHS Trusts can:
IFRS 16 is an International Financial Reporting Standard for leases and marks the elimination of off-balance sheet accounting previously used for Operating leases.
This impacts NHS Trusts by requiring the full cost of equipment or buildings to be charged against their Capital Departmental Expenditure Limit (CDEL), even when financed over several years. This creates budgetary pressures and limits flexibility.
PPU offers a compliant funding solution that enables NHS Trusts to use Revenue Budgets instead, helping to upgrade clinical capacity or equipment without exhausting capital budgets while staying compliant with the changes.
Frequently Asked Questions
Who is the PPU model designed for?
This model is ideal for NHS Trusts and Health Boards that face capital budget limitations but still need to invest in new infrastructure or medical equipment. It's also highly beneficial for suppliers who want to offer an alternative procurement route to their clients.
How is usage measured in the Pay Per Use model?
A usage workshop is held with key stakeholders to define clear tracking metrics and cost models. This ensures payment only reflects actual facility or equipment usage, offering a fair and transparent structure.
Can suppliers use this model to sell into the NHS?
Absolutely. By partnering with SAF, suppliers can offer NHS clients a flexible procurement solution without the need for capital spend, helping close deals faster and strengthening long-term relationships.
What happens if the facility or equipment isn’t used?
No usage means no cost. The model ensures that payment is only made when the asset is actively in use, helping avoid wasted budget and encouraging efficient utilisation.
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