Southcroft Lodge
Expanding Southcroft Lodge with finance under the Recovery Loan Scheme.
Health and Social Care Organisation ‘Southcroft Lodge’ explains how securing Business Finance under the Recovery Loan Scheme through Let’s Do Business Finance has enabled them to expand and continue supporting the community.
Despite starting out working in a bank and having a degree in accounting, Joshua’s passion for helping people and solving their problems led him to where he is today. Working in mental health care services for over 20 years, starting as a health care assistant and progressed to be a qualified nurse, he is a qualified Mental Health Nurse by profession, with experience in Management and Leadership in various NHS roles.
Having always been fascinated by the idea of ‘flow’, he came up with ways in which they could manage not only the flow of people coming into the hospitals but also how it could be managed afterwards. Further developing this idea, Joshua began to do a feasibility study, looking into the supported accommodation options in the area.
“The supported accommodation here has a very traditional kind of approach and that is what’s causing a problem in the system because they’re not flexible. So, then I thought, you know what? I can do this! Let’s focus on a client first approach.”
Established during the COVID-19 pandemic, Southcroft Lodge was created to support the Mental Health Trusts and Local Authorities. Over the last two and a half years, they have opened 16 homes across South-West London and offer four pathways to support the individuals who are referred there, ranging from low supported accommodation to long-term, high-supported living placements.
The beginning of this journey was one that came with some challenges. Whilst coronavirus was rife, banks were placing an embargo on business accounts and so Joshua found himself in a frustrating situation. After four months of chasing one of his personal banks about opening a business account, his accountant directed him to ANNA bank where he was finally able to open one up.
Historically, ethnic minority led businesses have struggled to obtain finance and that’s when Lendoe – a funding company dedicated to today’s underestimated entrepreneurs – introduced Joshua to Business Manager Lisa Young from Let’s Do Business Finance. After discussing how he could access the finance he needed for Southcroft Lodge’s growth, Joshua was informed that he was eligible for up to £150k under the Recovery Loan Scheme.
First launched in 2021, the Recovery Loan Scheme is a government backed loan scheme which provides access to finance for UK businesses as they recover from the COVID-19 pandemic. The scheme was extended in August 2022 and now focusses on growth, which allowed British Business Bank accredited provider and Community Financial Development Institution Let’s Do Business Finance to provide a loan to Southcroft Lodge of £150k.
“At first, I thought: ‘I didn’t need a loan, I don’t need support, I did it all on my own originally!’ Before we had thirteen homes but since receiving funding, we have added three homes with another three to come. What is so important to us is those three additional homes will benefit around 32 clients – and that is huge not only for us but for the community too.”
The loan has assisted Southcroft Lodge with the expansion of the business by enabling them to take on three new properties in three months compared to the previous rate of one property every four months. With more housing, they are able to employ more staff and continue to support more people, helping with the flow of the system.
“Joshua was introduced to me by Lendoe a commercial broker firm based in London, being a start-up business Southcroft Lodge was unable to access the funding they needed from traditional sources. I got to know Joshua over several weeks and understood how the Recovery Loan Scheme could support this business to grow and provide the accommodation that is much needed to support their clients. I was delighted that we were able to meet their needs and provide a suitable business loan.”
The future of Southcroft Lodge is one that is looking bright, with plans to getting its CQC registration which will allow them to carry out regulated activities such as administering medication. They are also investing in their technology by looking in to upgrading the electronic systems they use in documentation of client and service information – building a software that’s not available on the market. Another goal they hope to achieve is within a few short years creating a social network targeted at people who have overcome their struggles and providing a network HUB, encouraging others to share their struggles and how they have coped. With the expansion of their properties, they are well on their way to raising awareness for mental health struggles.