Explore how we compare to traditional invoice finance
Turnover agreement
FeatureSonovateTraditional Invoice Finance
Flexible turnover agreement
You have freedom to use Sonovate on a client-by-client basis as there is no all-turnover agreement.
All contract placements must be funded through the financing company or you will be in breach of your contract.
Each client treated individually
If one client fails to pay, this will not impact any of your other clients and the associated profit you receive.
An all turnover agreement will mean that if one of your clients fails to pay, the funds you have to service other clients can be reduced.
Turnover agreement
SonovateTraditional Invoice Finance
Flexible turnover agreement
You have freedom to use Sonovate on a client-by-client basis as there is no all-turnover agreement.
All contract placements must be funded through the financing company or you will be in breach of your contract.
Each client treated individually
If one client fails to pay, this will not impact any of your other clients and the associated profit you receive.
Tied into a 12-month+ contract with 30 to 90 day notice period on exit. Exiting earlier will result in fees and in some cases your profit will be withheld.
Complete cashflow management
100% of contract profit released one week after timesheet is approved and invoice is raised. Sonovate manage candidate payroll, client invoicing and collection of payment.
Up to 20% of invoice value is withheld until payment is received. This can have serious consequences on your businesses’ cashflow and may result in a shortfall when paying contractors.
In most cases, responsibility for paying candidates, invoicing and collection, remains with the agency.
Duration of contract
SonovateTraditional Invoice Finance
Rolling monthly contract
No long-term contract and only a 30-day notice period to exit.
Tied into a 12-month+ contract with 30 to 90 day notice period on exit. Exiting earlier will result in fees and in some cases your profit will be withheld.
Complete cashflow management
100% of contract profit released one week after timesheet is approved and invoice is raised. Sonovate manage candidate payroll, client invoicing and collection of payment.
Up to 20% of invoice value is withheld until payment is received. This can have serious consequences on your businesses’ cashflow and may result in a shortfall when paying contractors.
In most cases, responsibility for paying candidates, invoicing and collection, remains with the agency.
Standard fees
FeatureSonovateTraditional Invoice Finance
One fee
Our fee is a percentage of your turnover and is deducted per invoice. If you don’t use Sonovate – you don’t pay for Sonovate.
Multiple standard fees
Traditional finance agreements are subject to a range of fees including:
Service charge
Calculated as a percentage of total facility and paid upfront, regardless of how much of the facility is used.
Interest
Charged against your debtor days. This will be post VAT & you will need to add on the Bank of England base rate.
Standard fees
SonovateTraditional Invoice Finance
One fee
Our fee is a percentage of your turnover and is deducted per invoice. If you don’t use Sonovate – you don’t pay for Sonovate.
Multiple standard fees
Traditional finance agreements are subject to a range of fees including:
Service charge
Calculated as a percentage of total facility and paid upfront, regardless of how much of the facility is used.
Interest
Charged against your debtor days. This will be post VAT & you will need to add on the Bank of England base rate.
Additional fees
FeatureSonovateTraditional Invoice Finance
No additional fees
Simply put – there are no additional fees.
There are a host of other charges that can be applied. These will differ for each lender but the most common include: Set up fees, transfer fees, overpayment charges, late payment fees and re-factoring fees.
Additional fees
SonovateTraditional Invoice Finance
No additional fees
Simply put – there are no additional fees.
There are a host of other charges that can be applied. These will differ for each lender but the most common include: Set up fees, transfer fees, overpayment charges, late payment fees and re-factoring fees.
Concentration
FeatureSonovateTraditional Invoice Finance
No concentration limits
Providing your clients are credit worthy, Sonovate will not restrict businesses by implementing concentration limits.
A concentration limit will be set at the start of your agreement. This governs the percentage of your facility that can be assigned to one client at a given time. Simply put, this will restrict the number of contractors you can place with any of your clients.
Concentration
SonovateTraditional Invoice Finance
No concentration limits
Providing your clients are credit worthy, Sonovate will not restrict businesses by implementing concentration limits.
A concentration limit will be set at the start of your agreement. This governs the percentage of your facility that can be assigned to one client at a given time. Simply put, this will restrict the number of contractors you can place with any of your clients.
Reserves
FeatureSonovateTraditional Invoice Finance
No reserves
No need to worry about your profit being withheld.
Most invoice financiers will hold reserves in some way – for example, VAT, holiday, high risk debtors. This will impact your cashflow and forecasting, as the amount reserved is often not made obvious at the start.
Reserves
SonovateTraditional Invoice Finance
No reserves
No need to worry about your profit being withheld.
Most invoice financiers will hold reserves in some way – for example, VAT, holiday, high risk debtors. This will impact your cashflow and forecasting, as the amount reserved is often not made obvious at the start.
Technology
FeatureSonovateTraditional Invoice Finance
Bespoke cloud based account
Engineered to your precise needs, simply enter placements and monitor your business through your own branded account.
Limited functionality makes simple tasks time-consuming and complicated.
Technology
SonovateTraditional Invoice Finance
Bespoke cloud based account
Engineered to your precise needs, simply enter placements and monitor your business through your own branded account.
Limited functionality makes simple tasks time-consuming and complicated.
Account management
FeatureSonovateTraditional Invoice Finance
Dedicated specialist support
This is best in class. Sonovate manage credit control, online timesheets, invoicing and contractor payroll. Focusing on fewer administrative tasks allows you to spend more time on sales and growth.
As the product is generic so is the support provided. Conducting time-consuming tasks required to run a contract business becomes your responsibility as invoicing, credit control, contracts, timesheeting and contractor payroll will need to be manually processed.
Account management
SonovateTraditional Invoice Finance
Dedicated specialist support
This is best in class. Sonovate manage credit control, online timesheets, invoicing and contractor payroll. Focusing on fewer administrative tasks allows you to spend more time on sales and growth.
As the product is generic so is the support provided. Conducting time-consuming tasks required to run a contract business becomes your responsibility as invoicing, credit control, contracts, timesheeting and contractor payroll will need to be manually processed.
See how it all works
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