The UK’s leading recruitment finance provider, Sonovate, has funded £156m of the UK recruitment sector since its launch in 2014. This announcement highlights the company’s rapid growth and continued dominance across the sector.
Richard Prime, co-founder and co-CEO of Sonovate, commented: “UK recruitment businesses, of which 85% are classified as SMEs, are a vital part of the country’s economic ecosystem. These companies are a significant contributor to GDP by themselves, and at Sonovate we are committed to helping them grow.”
Founded by former recruiters Prime and co-founder Damon Chapple, Sonovate provides flexible finance free of all-turnover agreements and concentration limits, as well as the associated back office contractor management technology to recruitment companies placing contractors.
Widely recognised as a game changer, Sonovate is an alternative to the non-negotiable terms and impersonal service offered by UK banks and has transformed the recruitment industry and the way it funds contract workers.
Since launch, Sonovate has signed up nearly 1000 agencies and written off just £2,700 in bad debt – 0.000001% of the total lent, and significantly less than that of Funding Circle (8%) and Market Invoice (1.2%). In the final quarter of 2016 alone, the company signed up 168 new recruitment agencies and continues to grow at over 20% a month – this year 88% of recruitment start-ups that have taken finance used Sonovate. Sonovate’s team is now 116 people strong, up from just 25 last year.
Prime concluded: “Not only are we committed to transforming the recruitment sector; we are committed to driving SME growth more generally. The size of the sector is often vastly underestimated – but the market has huge potential and there’s a big appetite for Sonovate. As a result we are growing every day - watch this space!”
Sonovate provides contract finance solution to UK recruitment businesses. It is taking on old fashioned contract finance providers whose complex and inflexible products do not support recruitment businesses in fully realising their growth potential.