By Daniel Lanyon on Thursday 4 August 2022
The new partnership with Demica comes as the company says it is seeing demand for flexible funding soar by businesses.
Fintech lender Sonovate has struck a new partnership deal with Demica to help it scale amid rapidly growing demand for lending.
The deal will help Sonovate, which provides invoice financing for recruitment, boost its operations, finance, and credit control processes and lend more efficiently to customers. Increasingly this has been through an embedded finance strategy, providing its services to other businesses through an API.
Demica provides trade finance tools through a flexible cloud-based reporting platform.
"At Sonovate we’re committed to building an ecosystem of integrated fintech services that will revolutionise funding and payments for our business customers and serve their exacting, unique needs,” he said.
Sonovate has funded more than £2.75bn in invoices to date. Last year, it saw a 58 per cent year-on-year increase in total annual funding. This was partly driven by its enterprise lending volume soaring by 144 per cent, and enterprise customers now account for about one-third of its total lending volume.
The company says it is on track to deliver £1.3bn in funding this year – an increase of 85 per cent in total financing in 2021, a year in which the company almost doubled its previous annual funding record.
“As Sonovate continues to grow and serve more customers in more industries and geographies than ever, it is hugely important to us to develop and retain as much flexibility in the way we fund and provide technology solutions as possible. Our first securitisation and this partnership with Demica are key examples of that long-term strategy in play,” said Prime.