Recruitment invoice factoring

Industry leading recruitment invoice factoring

Thousands of businesses in the recruitment sector choose Sonovate because, unlike the banks, we’re really easy to work with and we’re on hand to help you anytime.

The platform we’ve built makes it really easy to manage and fund contractors. And unlike others, we pay up to 100% of invoice value upfront.

  • Simple setup.
  • No hidden fees or charges.
  • No concentration limits.
  • We don’t tie you into long contracts.
  • We won’t place a credit limit on you!
  • Bad debt protection included.
  • Quick credit decisions, same-day, nextday or weekly invoice funding.

Plus much, much more!

Leave your details with us, we’ll show you around the platform and get you funding in no time.

Built for recruiters, by recruiters

As a leading recruitment finance provider, Sonovate has funded over £4bn in 40+ countries, working with thousands of businesses from startups to enterprises. No more waiting 60+ days for money to come in, we fund up to 100% of the invoice as quickly as under 24 hours.

Click the button below to get a quote for your recruitment business.

I want to congratulate Sonovate on the most ridiculously easy timesheet system I've ever used. It took all of about a minute to do the whole week's timesheet. 

Kevin Stevens - Contractor

It’s clear they understand our world and what we’re working so hard to achieve. In the end Sonovate is a brilliant way for Core Consultants to unlock growth. We see a long and bright future together.

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Steve Hampson - Core Consultants

FAQs - Commonly asked questions about invoice factoring

What are the differences between invoice factoring and invoice discounting?

While invoice factoring and invoice discounting share a handful of similarities, there are distinct differences between them.

Invoice factoring is where a business sells its unpaid invoices at a discounted price in return for upfront finance — generally within a 24- to 48-hour period. In this agreement, the ownership of the invoice is essentially transferred to the invoicing financing institution —  or, commonly called a factoring finance provider — who then assumes the responsibility of collecting outstanding payments.

Conversely, invoice discounting is where a business leverages an outstanding invoice as collateral to receive a secured business loan from an invoice financing company. The lender in this arrangement will advance the majority of the invoice’s amount, which is then repaid upon the receivable’s collection. 

So, the key differences: 

  • Responsibility: In invoice factoring agreements, the factoring company assumes responsibility — which is not the case in invoice discounting agreements. 
  • Confidentiality: Not always, but generally, invoice factoring is disclosed to customers to make them aware of the payment collection process and agreement. Invoice discounting, however, tends to be more confidential, allowing businesses to maintain a first-person collection process and, in turn, potentially facilitating a strengthened client relationship. 
  • Risk: As the responsibility of collecting payments in invoice factoring agreements is transferred to the factoring company, they also bear the associated risk of non-payments — meaning they increase their susceptibility to loss. This is unlike invoice discounting where the business retains the responsibility and associated risks of non-payments. 

Which should I choose, invoice factoring or invoice discounting?

Naturally, when you compare recruitment factoring with discounting, the choice lies in your specific needs and financing situation. Here’s a handful of key considerations:

If you’re considering either invoice discounting or invoice financing, this means that you require upfront finance. However, if you want the responsibility of collecting outstanding receivables to be in the hands of a factoring company, then invoice factoring may be more preferable. Or, if you want to maintain a closer relationship with your clients by bearing the responsibility of collecting outstanding payments and being the go-to point of contact, then invoice discounting may be more suitable. 

Furthermore, do you require confidentiality where your clients aren’t aware of the upfront payments being made? Invoice discounting offers you this. Conversely, if you don’t mind your clients being aware of your relationship with a factoring company, then invoice factoring may be the better option. 

Ultimately, the decision between the two boils down to your business priorities, preferences and the way each form may contribute toward your sustained growth. To learn more about which option may be best for you, reach out to our team who can answer any questions that you may have. 

Email us at [email protected], or call us at 020 7112 4959.

What are the benefits of invoice factoring?

Among the host of invoice factoring benefits, here are two key reasons businesses in the recruitment sector specifically seek recruitment invoice finance solutions.

Improved, predictable working capital: Perhaps the key benefit of invoice factoring is that it allows recruitment agencies — small and large alike — to receive immediate payments for their outstanding receivables, rather than spending time waiting for clients to pay. Because of the cash flow predictability and consistency that is facilitated by invoice factoring, businesses can meet payroll and operating expenses on time, invest in growth opportunities and be positioned to negotiate more favourable terms with vendors, among other benefits. 

Enhanced scalability: As recruitment agencies grow and take on more clients, they can factor in more invoices and, in turn, receive more immediate working capital — facilitating them to scale up, or down, based on need. This is particularly true when recruitment agencies partner with Sonovate: We don’t tie our clients down to long-term contracts. Instead, we work on an invoice-by-invoice basis, further facilitating scalability. 

The benefits don’t end there: With invoice financing, businesses can simplify back-office operations, better manage risk and improve client relationships, among others. 

Why should I choose Sonovate for invoice factoring?

At Sonovate, we offer simple, fast and flexible funding solutions. Specifically, when you partner with us, you gain:

  • A seamless onboarding process: To make matters easy, we offer no setup fee or personal guarantee. Additionally, the onboarding process is seamless and intuitive, with around-the-clock support at your disposal. 
  • Flexibility: We offer rolling contracts — nothing long-term that ties you down. You can operate on an invoice-by-invoice basis and gain predictability with peace of mind. 
  • Cash on demand: With Sonovate, you can gain access to capital in just 24 hours. 

Furthermore, to ensure that all of your i’s are dotted and t’s crossed, you need to partner with a trusted recruitment finance provider who ensures that all regulatory and compliance requirements are covered. When a recruitment agency gains invoice financing through Sonovate, they can rest assured that they are in complete compliance with all the relevant regulatory requirements. 

And, we offer our clients an intuitive, state-of-the-art dashboard that provides a full overview of pricing logistics, as well as visibility of worker payments, individual receipt accounts and other relevant components. 

Gain predictable, secure cash flow with Sonovate

Whether you’re a large, multinational recruitment company or a startup in the recruitment sector, invoice factoring via Sonovoate can facilitate sustained growth and organisational stability — irrespective of market instabilities. 

Thousands of recruitment agencies trust Sonovate — you can read their stories here. Having funded billions of euros across the globe, businesses choose us because of our flexibility, regulatory assurance, support offerings and more. 

Facilitate growth via invoice factoring. Leave your details with us and our team will be in touch soon.

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