Sonovate completes £165m securitisation deal with BNP Paribas and M&G Investments

Sonovate says it is on track to achieve £1.3bn of funding to contract workers in 2022 and £2bn in 2023.

Sonovate has completed a new securitisation deal with BNP Paribas and M&G Investments, adding £165m to its funding mix.

The lender, which helps finance invoices for contract workers, is based in London and Cardiff and has been rapidly increasing its headcount to meet a growing demand for its services.

As a result of the tech revolution and the move towards flexible working, the contingent labour marketplace is growing very quickly, said Richard Prime, CEO and co-founder of Sonovate.

“Deals such as this one provide us an exceptional level of flexibility,” said Prime.

“This securitisation is designed to support the new world of flexible working. It is scalable, adaptive, and provides stability in the long term,” said Renaud Chalmet, deputy head of corporate receivables securitisation at BNP Paribas.

In April, the company made the move to embedded lending in an effort to attract more enterprise customers. 

Sonovate says it has funded more than £2.75bn in invoices to date, following a 58 per cent year-on-year increase in total funding in 2021.

Enterprise customers now account for about one-third of its total lending volume and tt forecasts to lend over £1.3bn in invoices this year alone and another £2bn in 2023.

Demica acted as adviser and reporting agent on the transaction.