IFRS 16 Leasing | MMC and Equipment finance

Pay Per Use funding solution

Providing suppliers of healthcare equipment and modern methods of construction

with a funding solution which can be specifically tailored to the NHS.

What is the SAF PPU funding solution?

The SAF 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.

Seamlessly integrated with the suppliers’ sales team, SAF experts are on hand to procure and manage a PPU funding solution.

In essence, the SAF PPU solution provides NHS trusts with much needed equipment and capacity without the impact on their current Capital Departmental Expenditure Limit (CDEL). Our newest, most innovative procurement solution allows the NHS to obtain additional capacity or equipment and only pay each time it is used.

Want to learn more?

I’m a supplier – how do I know the PPU solution is the right option?

At SAF, our team has more than 20 years of experience in providing funding solutions for the NHS, having funded over £750m in sales within the modular building sector.

Our team holds a vast amount of in-house knowledge and is therefore able to respond to legislative changes, helping navigate complex finance structures and regulations to find the optimal outcome for both our supplier partners and NHS Trusts.

Our team of experts seamlessly integrate with a supplier’s sales team to procure and manage a PPU funding solution that is right for all parties. SAF Solutions have worked with many suppliers and NHS Trusts to create bespoke, flexible finance solutions from equipment upgrades to multi-million-pound new facilities.

A PPU solution offers a host of benefits to equipment and modular suppliers, as they don’t hold the liability for non-usage and instead receive payment upfront from day one.

Some of the key benefits for suppliers include:

Full facility cost made available from day one, so no risk around non-usage of the equipment/facility
A solution that offers a compliant alternative procurement method, helping close more sales cycles
Unlocks the opportunity to revisit historic enquiries that may have fallen away due to a lack of capital funding

Visit our range of case studies

Modular Buildings

Tailored procurement solution for new state-of-the-art Outpatient Services Facility at Kings College Hospital

Trust: King’s College Hospital NHS Foundation Trust | Premier Modular
Supplier:

Modular Buildings

Implementing the finance solution for a £23m modular ophthalmology facility

Trust: University Hospitals Plymouth NHS Trust
Supplier: MTX
Value: £23m

Modular Buildings

Transforming existing hospital estate for a new modular urology facility at University Hospitals Plymouth

Trust: University Hospitals Plymouth NHS Trust
Supplier: MTX
Value: £11m

Modular Buildings

ModuleCo Healthcare – Theatre & Ward project

Trust: University Hospitals Birmingham NHS Foundation Trust
Supplier: ModuleCo Healthcare
Value:

IFRS 16 leasing changes – what do they mean?

IFRS 16 is an International Financial Reporting Standard for leases and marks the elimination of off-balance sheet accounting previously used for Operating leases.

IFRS 16 brings a significant change to financial statements and how a business should recognise, measure, present and disclose leases. This reporting standard introduces a single lessee accounting model, requiring lessees to recognise assets and liabilities on their balance sheet.

Under this standard, any business entering a lease is required to recognise this on its balance sheet for both Operating and Finance leases. This not only impacts the balance sheet of the financial statements, but also has an impact on asset financing, IT systems and processes.

How can SAF Solutions support the IFRS 16 changes?

SAF Solutions is the UK’s leading finance provider for medical equipment and modular healthcare construction across the NHS through flexible finance agreements. Our team of experts has extensive knowledge of complex procurement frameworks across the healthcare sector.

In light of this, we are well placed to support both suppliers and end-users navigate the impact of the IFRS 16 accounting change through our Pay Per Use solution.

In short, the accounting change means the NHS are required to utilise their Capital Departmental Expenditure Limit (CDEL) for the total cost of any new equipment or building purchases, even if the finance agreement is spread over several years.

Through our Pay Per Use solution (PPU), we can implement a funding option that allows an NHS Trust to utilise Revenue Budgets for clinical capacity or equipment upgrade projects, taking into account and remaining compliant with the latest accountancy change.

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