Recruitment finance provider Sonovate secures £10m debt funding from PNC
Startups Awards People’s Champion contender plans to back £250m in UK contract recruitment industry over next three years
Sonovate, an early-stage finance provider for recruitment agencies placing contractors, has today announced that it has secured £10m in debt funding from PNC Business Credit, a subsidiary of American bank PNC.
The round takes its total investment to date to £14m, having already secured funding from Bebo founder and angel investor Paul Birch.
Launched earlier this year, People’s Champion finalist Sonovate is looking to take on “old fashioned contract finance providers” by making paying and managing contractors “easy and profitable”.
Using a cloud-based technology platform, it provides agencies with 100% of their profit the week after contractors’ timesheets are approved, doesn’t place any concentration limits on agencies, and doesn’t rely on turnover agreements.
On the back of its claim that no other contract finance provider supports recruitment agencies in this way, the financial technology (FinTech) start-up plans to use the new investment to fulfil its aim to fund up to £250m in the UK contract recruitment market over the next three years.
Sonovate co-founder and CEO Richard Prime, said:
“The UK recruitment industry has a turnover close to £30bn, with the temp/contract market accounting for 91% 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.
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“We are facilitating the growth of the UK recruitment sector by enabling small, micro and medium-sized recruitment companies to secure the necessary funding and the administrative support to take advantage of the rapidly expanding contractor market.”