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.
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.
Duration of contract
FeatureSonovateTraditional Invoice Finance
Simplified agreements
No complex covenants. Newly setup or small businesses benefit from rolling contracts, and only a 30-day notice period to exit.
Tied into complex convenants, often 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
Up to 100% of contract profit released 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
Simplified agreements
No complex covenants. Newly setup or small businesses benefit from rolling contracts, and only a 30-day notice period to exit.
Tied into complex convenants, often 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
Up to 100% of contract profit released 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.
Transparent pricing
FeatureSonovateTraditional Invoice Finance
Transparent fees
Our platform shows you exactly what you are being charged. Keep visibility and retain control. Understand your costs at a glance.
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.
Transparent pricing
SonovateTraditional Invoice Finance
Transparent fees
Our platform shows you exactly what you are being charged. Keep visibility and retain control. Understand your costs at a glance.
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.
Simple fees
FeatureSonovateTraditional Invoice Finance
No hidden fees
Simply put – there are no hidden costs.
There are a host of other charges that can be applied, some of which will be hard to spot. 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.
Simple fees
SonovateTraditional Invoice Finance
No hidden fees
Simply put – there are no hidden costs.
There are a host of other charges that can be applied, some of which will be hard to spot. 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.
