Funding request process

  • Submit your placement or complete our online Funding Request form
  • As part of our shared service level agreement, Sonovate guarantee a same day response for funding requests submitted by 1pm. However, if a credit limit decision requires escalation to an underwriter, the process will likely take longer.
  • As soon as credit limit is approved, you'll receive notification in your Sonovate account.

Bad Debt Protection

We offer our customers Bad Debt Protection on 90% of the net invoice value.

This protection can ensure your cash flow is not as adversely impacted by a Client's (the Debtor of the debt) financial failure.

The main points are detailed below:

  • 90% of the value of the net invoice is protected – e.g. if there was a £10,000 + VAT (£12k) bad debt then you would be protected for £9,000 of the debt. The VAT would not be paid from bad debt protection (but can be reclaimed from HMRC on the VAT you’ve already paid!). There are some caveats as detailed on the HMRC website - This process would be completed outside of Sonovate by yourself or your accountant.
  • Bad debt protection is only available on Funding where client payment terms are less than 60 days - Funding with terms over 60 days will be considered on a case-by-case basis.

Bad debt protection against:

  • Insolvency: this is when a company is not able to repay its debts when falling due, and includes liquidation or administration of the Debtor
  • Protracted Default (PD): when a company fails to pay the contractually agreed debt within the agreed period and after our Collection process is completed. 

When one of the two above events materialises, we will seek to recover the unprotected part of the debt from you when we pass the claim.

For more information on our collections process, please click here.


The greater of either £1000 or 10% of the net outstanding approved debt.

How much does it cost?

Bad debt protection is included in our price as standard and there are no hidden costs such as credit check fees, annual renewal fees or credit limit fees!

How much protection do I get on each Debtor?

We provide you with a bad debt protection limit, documented as a Credit Limit against each of your Debtors. 

We continually credit check all Debtors, prior and during funding, so you remain informed of your bad debt protection level, assuming all collections processes have been correctly followed.

How fast are you?

As part of our shared service level agreement, Sonovate works towards a same day response for funding requests submitted by 1pm. After this, funding requests will be reviewed by 1pm the following working day.

Sometimes the consideration of funding and offering bad debt protection requires human underwriting and further review. In these circumstances we typically review these cases within 24hours, but may require additional information, either from You or the Debtor, such as: Up to date financial statements; Fresh credit investigation for new entities; or, Clarity on group structure and group financial performance and support.

What happens on debt not covered by your Bad debt protection

Unfortunately, there are no guarantees to the provision of us offering bad debt protection. We understand this can be a frustration but there are options in these circumstances:

You can request the client reduces the terms, for example, from 30 days to 14 days which reduces the exposure.

Sonovate can offer to fund with recourse - this means that the invoices will be funded without any cover but in event of non-payment or insolvency, the full amount of the debt would be liable to be paid by you, so it is important to consider the implications of accepting the recourse. It is also worth noting that this is offered under the discretion of management and can be withdrawn if any concerns around payment or further market information is revealed.

You can request up to date financials for us to reconsider our position on the bad debt protection.

On occasion, our Bad Debt protection cover can be withdrawn due to impacting events, such as; down turning company accounts, late filling of accounts and negative media updates.  

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