Lloyds backs Sonovate securitisation increase to £240m
Sonovate, an invoice finance solutions provider based in London, UK, has increased its securitisation to £240 million following a significant financial commitment from Lloyds Bank.
Sonovate increases securitisation to £240m
The increase builds upon a £165 million deal the company made with BNP Paribas and its long-term funding partner M&G Investments in July. As part of the new arrangement, Lloyds has agreed to commit £100 million to the company’s funding capacity, as has BNP Paribas, while M&G has increased its overall contribution to £40 million.
As a cashflow provider to the UK’s contingent workforce, including temporary, part-time or contracted workers, Sonovate’s elevated securitisation is set to increase its capital efficiency and ability to facilitate export financing demands.
The company explained through its latest statement that it would leverage its new financial standing to “broaden” its customer base with a particular focus on the enterprise sector. Having established its own funding hub in Amsterdam, the Netherlands, in June, it will also seek to extend its funding capabilities to companies headquartered outside of the UK.
This year, it also began funding permanent placements for smaller recruiters, and claims to have funded £4.2 billion in invoices since its started its funding initiative in 2014.
Sonovate co-founder and co-CEO, Richard Prime, says its newly-increased securitisation will “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 describes the backing of Lloyds as “a huge boost”, and plans to lead the expansion of its Dutch customer base with “alternative funding and pioneering technologies”.
