A large recruitment group with £134m turnover had reached a point where its existing funding and operational setup could no longer keep pace with the way the business was growing.

The group had scale, momentum and a clear acquisition-led strategy. It was also managing a more complex operating model, including export receivables, permanent recruitment invoices, RPO and MSP debtor flows, and multiple subsidiaries.

But its existing facility was capped at £20m, while the debtor book had grown to £25m.

The business was strong. The opportunity was clear. But the structure around it was starting to restrict growth, create pressure and limit flexibility.

The challenge

As the group continued to scale, the gap between its growth ambitions and its existing setup became harder to manage.

The incumbent lender would not provide additional support, despite the debtor book having grown beyond the existing facility cap. PAYE pressure was beginning to build, the lender wanted a route out of the relationship, and the business was passed to a corporate advisory team.

Several funders reviewed the deal and stepped away due to the complexity.

The issue was not the quality of the business. It was the funding and operational structure around it.

The group needed more than a standard facility. It needed a connected solution that reflected how the business actually operated.

Why the deal was complex

This was not a straightforward funding requirement.

The group needed support across several areas that can often sit outside a conventional funder’s comfort zone, including:

• Acquisition-led growth
• Export receivables
• Permanent recruitment invoices
• RPO and MSP debtor flows
• Multiple subsidiaries
• A debtor book that had outgrown the existing facility cap

For many funders, that combination created too much complexity.

For Sonovate, it was a case of understanding the shape of the business, then building a structure around it.

How Sonovate supported

Sonovate structured a fit-for-purpose solution built around the real needs of the group.

Rather than forcing the business into a standard funding template, Sonovate created a structure that could support the way the group was already operating and where it was heading next.

The solution brought together the funding, flexibility and operational support needed to help the business move forward with greater confidence.

It included support for:

• Uncapped funding
• Export receivables
• Permanent recruitment invoices
• RPO and MSP debtor flows
• Multiple subsidiaries
• The group’s acquisition-led growth strategy

This was not about being the cheapest option. It was about delivering the right structure through a platform built for how recruitment and consultancy businesses actually work.

The outcome

Sonovate helped create a practical route forward for a strong recruitment group that had become restricted by the wrong setup.

By aligning the funding and operational structure to the real needs of the business, Sonovate gave the group the headroom, flexibility and confidence it needed to continue moving forward.

For large recruitment and consultancy businesses, this is where the right platform can make a real difference.

Complexity does not have to stop a strong deal. With the right structure, it can become the starting point for a better way forward.

Could your current setup be holding growth back?

Whether you are reviewing current funding, planning for growth or working through a more complex operational scenario, Sonovate can help shape a solution around how your business actually operates.

See how Sonovate supports enterprise recruitment and book a 1-1 consultation