Founders: Richard Prime and Damon Chapple
Sonovate is the leading provider of embedded finance and payment solutions for the global workforce. Its finance and technology services cater to recruitment businesses, consultancies, and labour marketplaces that place workers (contractors and freelancers) around the world. Sonovate’s mission is to be the funding platform for the future world of work.
With nearly two decades of experience in recruitment combined, Richard Prime and Damon Chapple founded Sonovate in 2011 to disrupt the typical business lending model to make sure workers get paid on time, every time, for the work they do. Since its inception, Sonovate has lent more than £4.2 billion to 3,300 businesses and 40,000 workers in 44 countries.
As the contingent workforce grows (estimated to be worth $5.4 trillion at the end of 2022), issues with cash flow, accessing loans and concentration limits are stunting the growth of businesses of all sizes. Compared to 2022, two-thirds more SMEs are experiencing difficulty accessing finance from mainstream banks and more than half (54%) say banks’ lending policies haven’t kept pace with modern business needs.
Consultancies report similar difficulties – late payments are among the biggest barriers to achieving or maintaining profitability and more than a third (35%) believe that unlocking finance is key to winning more new business.
Issues with cash flow, including difficulty accessing loans, concentration limits and limits on export funding are having a negative knock-on impact on an array of businesses across the UK, stymying their growth and ability to remain competitive in a tough economic landscape.
Sonovate is playing a key role in solving this by helping to bridge the gap between cash flow and working capital, providing access to more flexible funding services than traditional banks.
Offering 100% invoice funding compared to 60-90% by its competitors, Sonovate does not impose concentration limits. Its cutting-edge technology and expert service deliver swift credit decisions, same-day funding, credit insurance and collections services, allowing companies to concentrate on expanding their business, confident that the correct funds are in place. Organisations that choose Sonovate as their first funder grow three times faster than their peers.
This year, Sonovate has significantly enhanced its platform, offering flexible funding, developing international capabilities and workflow automation. The wider contingent labour ecosystem can now leverage these solutions, using state-of-the-art fintech capabilities that allow fast and easy payments across the workforce supply chain.
Sonovate’s growth provides a clear indication of its positive trajectory. In 2022, the amount funded per month surpassed £100 million for the first time, and by the end of the year, it jumped again by 33% to £110 million. Sonovate has also expanded to the Netherlands and is accelerating recruitment, aiming to expand to 230 employees by the end of 2023, further evidencing its growth.
Sonovate is continuing to scale at pace and deliver on its mission to be the funding platform for the future of work. Day to day, it’s focused on ensuring its customers can grow without restraint, confident that they have the funds in place to scale at pace and succeed.