The Take-On Ledger is the Sales Ledger purchased at the point of transfer to Sonovate.

As Sonovate funds as standard at 100% there is huge benefit from utilising our facility and this guide explains what will happen next. 

There are some differences from a standard finance product and we want to provide a smooth transition to our service.

The following areas will be covered:

  • How much you should expect to receive in total
  • What will the cost be?
  • How it will be sent and when
  • How the funding will work following commencement
  • Any exceptions

How much should you expect to receive and when

The benefit of 100% funding will begin from the first week of payroll and the outstanding funds i.e. the difference between the Sales Ledger purchased and the Current Account/Funds In Use will generally be the amount owed to you. We will collect the outstanding funds through our credit control process and will make a payment weekly for the entitlement.

The expected gross entitlement figure will be advised by our Onboarding team upon transfer but we cannot guarantee that this is the exact amount that will be received. Disputes and disapprovals may arise during our credit control which we will do our best to resolve (with your input if required), but this would affect the amount payable.

It is important that you ensure availability is fully drawn down prior to transfer to avoid a disruption to cashflow.

Less fees as detailed below

  • Assuming no disputes or short-payment arise during collections.
  • Effective IP% on transfer is 77% in this example so there would be an Entitlement of 23% after FIU repaid.

What will the cost be?

During the period between transfer date and full collection of the purchased ledger, Sonovate will charge a fee of 3.00% + base rate (pro-rata). This will be calculated by:

  • Each week ending balance x 3.00% + base rate

This amount will be deducted each week from the total collections and the fees will only be applicable for the period of time that the take on ledger remains outstanding.

How it will be sent and when?

Following transfer, we will continue to collect the whole take on ledger. Each collection will clear off the pre-funded invoices and the entitlement i.e. if effective IP is 90% on transfer date then collections would generate 10% of cash to be transferred.

We will make a payment weekly on a Wednesday to reach your account on a Friday. The Relationship Team will advise of the transfer amount and send across a copy of the Take On ledger evidencing cash collected and outstanding remaining.

Full repayment of the funds would be expected within the normal debt turn of the ledger e.g. if the debt is normally paid within 30 days then the full amount would be paid back in and around 30 days, if it is 60 days then would be in and around 60 days etc.

How the funding will work following commencement?

For clarity, the purchased Sales Ledger will not be funded. A new ledger will be created with Sonovate starting from the first week of invoicing.

The key difference between a standard factoring or ID facility and Sonovate is that our funding is linear against each individual placement as opposed to a rolling credit line. This makes it very simple to see what the profit is on each contractor and track invoices, payments and collections.

Standard factoring and ID facilities group all invoices and collections to create availability and tend to fund at 90% or less so it is not possible to clearly see from where the funds are being generated.


There may be some exceptions as to why the expected funds are lower than proposed at transfer as listed below:

  • Additional charges were added by the previous funder such as termination fees, discount margin, disbursements.
  • There are disputes or underpayments which prevent us from collecting the outstanding Sales Ledger
  • PAYE outstanding has been covered by previous funder in error so any balances are deducted from transferred collections.

We will look to advise on any exceptions as early as possible for you plan future cash flow.

Download a copy of Transferring Debt 

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