Sonovate, the new finance provider for recruitment agencies placing contractors, has secured a £10 million debt facility from PNC Business Credit, a wholly owned subsidiary of PNC Bank N.A. This facility underpins Sonovate’s commitment to finance up to £250 million in the UK contract recruitment market within the next three years alone.
This, alongside the £4 million already secured from tech angel investor Paul Birch, has enabled Sonovate to bring a new and highly innovative added value solution to the contract recruitment market.
Sonovate co-founder and CEO Richard Prime comments: “The UK recruitment industry has a turnover close to £30 billion, with the temp/contract market accounting for 91 per cent of this. But many recruitment businesses are unable to take advantage of this because of the cashflow and admin challenges associated with running contractors.
“Banks and traditional finance houses simply don’t understand the unique requirements of recruitment businesses. We are committed to funding £250 million worth of contract placements over the next three years alone and helping recruitment agencies secure more new business than ever before.”
Sonovate’s unique offering is designed to make paying and managing contractors easy and profitable. It provides agencies with 100 per cent of their profit the week after contractors’ timesheets are approved and does not place any concentration limits on agencies, nor does it insist on highly restrictive all turnover agreements.
Sonovate goes beyond providing the finance to enable recruitment companies to grow. It has introduced the technology alongside this to take care of the entire administrative burden associated with running contractors, including invoicing, timesheets and chasing late payments.
This new model of finance combined with technology enables recruiters to focus on billable activity safe in the knowledge that their contractors are being paid, their cashflow is secure and all back office admin is taken care of. No other contract finance provider is tailored specifically to the needs of the recruitment agency in this way.
Prime concludes: “We are facilitating the growth of the UK recruitment sector by enabling small, micro and SME recruitment companies to secure the necessary funding and the administrative support to take advantage of the rapidly expanding contractor market.”