Care now, paid later: bridging the cash flow gap in social care

When it comes to caring for others, Victoria Simpson doesn’t have time to waste.

In just eight years, her passion and expertise turned one residential care company into six. Today, VCare Group holds healthcare and education companies, employs 200 staff, and has contracts with local authorities and the NHS.

‍VCare’s growth has been relentless. But growth in care comes with a specific cash flow problem: you deliver the service, then you wait. Local authorities can take anywhere from 30 to 60 days to pay. Meanwhile, 200 people need paying every month.

“It might be just a two or three day gap,” Victoria says.

“But when you've got payroll running at that level, two or three days matters.”

Invoice financing felt like monopoly money

Before iwoca, Victoria tried invoice financing twice. Both times, getting out proved harder than getting in.

The facility cost around £1,500 a month. If one local authority delayed or held back funds, concentration limits kicked in and she couldn't draw down anyway. And because VCare sometimes invoices before delivering the work (standard in education contracts), the financing company wouldn't allow it.

“I felt like we were playing with monopoly money,” Victoria says. “We were looking at two different percentages, and you only draw down part of it. I always found it hard to know where I actually stood.”

Then, with eight weeks’ notice, the bank pulled the plug entirely. Over Christmas. When every local authority shuts down and nobody's paying anyone.

Careful lending, carefree payroll

Then someone recommended iwoca. The application took a couple of days. Now Victoria just calls her account manager, uploads the latest bank statements, and takes what she needs.

The pattern is simple: draw down around £200,000 to cover payroll and keep a buffer, then pay it back within a week. No £1,500 monthly fee, concentration limits, or restrictions on when she can invoice.

Buying properties, bypassing the banks

Victoria's plans have outgrown cash flow bridging. She's now looking at purchasing properties for the group, and iwoca is part of the strategy.

“High street banks are risk-averse. They won't lend for a purchase,” she explains. “But they will refinance a property you already own.”

“I can use iwoca to purchase a property, put it back under the company, and then tell the bank: we've got this property, we just need to refinance it,” she says. “They're more willing to do it that way.”

More time with the people who matter 

Victoria is also using her iwoca funding to build AI apps that can replace the patchwork of systems her managers currently wrestle with. Healthcare is legislation-heavy, and the admin eats time that should go to clients. 

“iwoca’s funding helps us build monitoring and reporting tools that give senior leaders a better overview, so they spend less time in the office and more time on the people in our care.”

From payroll panic to problem solving

When Victoria first started the business, her kids had a name for the state she'd get into around payroll time. She'd panic about getting the money in to pay the wages.

Eight years later, she doesn't panic. She looks for solutions.

“I think there's always a solution out there,” she says. “When I first started in business, I was in a different headspace. But as the business has developed, I've also grown as a person and a leader.”

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