Cardiff-based business lender Sonovate has boosted its lending capabilities to £240m after adding Lloyds Bank to its group of finance providers. The fintech venture, which also has an office in London, has increased its securitisation to £240m, from the £165m announced in 2022.
Securitisation is a financial practice of pooling certain types of assets and repackaging them into a tradable financial asset. Sonovate said this significantly expands its capacity to fund internationally, particularly in the Netherlands where it set up a new operation earlier this year, and provide flexible finance options for larger businesses.
As part of joining Sonovate’s finance providers, Lloyds Bank has committed £100m. BNP Paribas, which was a participant in the first round of securitisation, has also committed a further £100m, while M&G, Sonovate's long-term funding partner, has increased its overall contribution to £40m.
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The deal increases Sonovate’s capital efficiency and expands its customer base, especially in the enterprise sector, while expanding its capabilities by growing its pool of lenders.
Richard Prime, co-founder and chief executive of Sonovate, said: “This is an enormously exciting time for Sonovate. Our newly expanded financial capabilities allow us to take the next step on our mission to be the funding platform for the future of work, ensuring all workers get paid on time, every time, for the work they do.”
He added: “We’re particularly excited to grow our customer base in the Netherlands, where we intend to disrupt existing structures by offering alternative funding and pioneering technologies. Having the backing of lenders such as Lloyds gives us a huge boost, and we look forward to working alongside the team to provide better, more effective finance options to organisations across the globe.”
Sonovate is the 海角视频’s leading finance and back-office tech provider to recruitment agencies and consultancies. It also has aspirations to become Wales’ first unicorn business.
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Last year it provided more than £1.1bn in funding to clients and has reached £4.2bn in invoices funded to date. This growth is attributed to faster adoption of its services by large and enterprise-size recruitment businesses as rising costs force businesses to seek better cashflow options and drive growth.
Earlier this year, the company launched a new platform which allows customers to request funding as and when they need it, in multiple-currencies and across multiple sectors and countries. The platform also provides faster onboarding and integration with a multitude of industry leading finance packages to facilitate timesheet automation, payments, invoicing, reporting, and reconciliation.
It has also started funding permanent placements for smaller recruiters for the first time this year, allowing them to leverage a new avenue to maximise cash flow and fuel business growth.