Q&A with Abeed Mohamed, Birdie’s Chief Strategy Officer: why we’ve partnered with TRIVER

Q: Why has Birdie partnered with TRIVER?
A: At Birdie, our mission is to support care providers in delivering the best possible care. We recognise that financial pressures in the industry, particularly given recent National Insurance increases, make it challenging for care providers to achieve this goal. Partnering with TRIVER allows us to offer innovative cash flow solutions, enabling homecare agencies to access funds tied up in Local Authority contracts promptly. This collaboration is about empowering providers to focus on care delivery without the constant worry of financial constraints. It’s about business sustainability.

Q: What financial challenges are homecare agencies currently facing in the UK?
A: Homecare agencies are grappling with several significant financial pressures. April’s Budget brought increases in National Insurance, as well as a lowering of the threshold at which they become payable, creating a double whammy for many providers in the sector. And that’s set against a backdrop of small or no increases in Local Authority commissioned rates, significant inflation over the last years, and a challenging environment to recruit and retain staff.

Delayed payments specifically are a major challenge, severely impacting the working capital requirements of care providers. According to The Guardian, over £679 million owed to care providers in England had been outstanding for more than 30 days in 2023. £567 million of that was due from local authorities and £112 million from NHS integrated care boards. More than 60% of providers reported having at least one invoice unpaid after six months. For many agencies, this is an existential issue, and the difference between keeping the lights on or shutting down. 

According to Community Care, 4 in 10 adult care providers reduced services last year. 19% of providers made redundancies because they could not cover national insurance. Homecare Insight says that Local authorities are paying, on average, 25% to 35% below the amount needed to ensure high-quality, sustainable care services. Only 5% of UK public organizations paid the minimum price for home care as calculated by the Homecare Association. A whopping ⅓ of care providers are considering leaving the market.

What we see is an urgent need for financial solutions that provide stability and sustainability for care providers, because we know that our society needs them now more than ever. Partnering with TRIVER to ease that financial burden for agencies felt like a no-brainer. 

Q: How does TRIVER's solution address these financial challenges?
A: TRIVER offers a platform that enables homecare agencies to unlock cash flow from their Local Authority contracts promptly. By providing immediate access to funds that would otherwise be tied up in lengthy invoicing cycles, agencies can ensure timely payment of staff wages and operational expenses.

This can help them avoid the need to reduce services or hand back contracts, instead investing in quality improvements and staff development. And they can focus on caring, rather than chasing invoices. This financial flexibility is crucial for agencies striving to maintain high standards of care amidst economic pressures.

Q: What is the broader goal of the Birdie-TRIVER partnership?
A: Our collaboration aims to build resilience within the care sector by providing practical financial tools that address the root causes of instability. By combining Birdie's expertise in digital care solutions with TRIVER's innovative financial services, we can support the sustainability of small and medium-sized care providers. This is crucial to enhancing the quality and continuity of care services for our communities. Because everyone deserves quality care.

By helping agencies navigate financial challenges effectively, we can help them continue to deliver exceptional care to those who need it most.