Sonovate is a smarter way to finance your contract staff
Sonovate: Flexible Turnover Agreement
You have freedom to use Sonovate on a client-by-client basis as there is no all-turnover agreement.
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.
Invoice Finance: All Turnover Agreement
All contract placements must be funded through the financing company or you will be in breach of your contract.
Over Limit Reserves & Retentions Held Against Entire Debtor Book
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.
Personal Guarantees & Debentures
Sonovate: No Personal Guarantees Required
No personal guarantee required and a debenture is only registered when more than five contractors are running, giving you the freedom to try Sonovate.
Invoice Finance: Security Held Against Business & Directors
Both a personal guarantee and debenture will be put in place as soon as the agreement begins. Funding will not be available until these are in place.
Duration of Contract
Sonovate: Rolling Monthly Contract
No long-term contract and only a 30-day notice period to exit.
Invoice Finance: Usually 12 Months
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.
Sonovate: 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.
Invoice Finance: Only 80% to 90% Invoice Value Released
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.
Sonovate: 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.
Invoice Finance: Multiple Standard Fees
Traditional finance agreements are subject to a range of fees including:
Calculated as a percentage of total facility and paid upfront, regardless of how much of the facility is used.
Charged against your debtor days. This will be post VAT & you will need to add on the Bank of England base rate.
Sonovate: No Additional Fees
Simply put - there are no additional fees.
Invoice Finance: Several 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.
Sonovate: No Concentration Limits
Providing your clients are credit worthy, Sonovate will not restrict businesses by implementing concentration limits.
Invoice Finance: Restrictive 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.
Sonovate: No Reserves
No need to worry about your profit being withheld.
Invoice Finance: Reserves Impacting Cashflow
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.
Sonovate: Bespoke Cloud Based Account
Engineered to your precise needs, simply enter placements and monitor your business through your own branded account.
Invoice Finance: Outdated & Inadequate
Limited functionality makes simple tasks time-consuming and complicated.
Sonovate: 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.
Invoice Finance: Generic Support
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.
Arrange your demo today to find out exactly how all of these game changing features combine to take your business to the next level and beyond.