XPO believes there is a mismatch between what the big brands and the influencers they use see as a reasonable payment time.
Image source: Richard Prime / Sonovate.
Recruitment lender Sonovate is teaming up with a months-old app that speeds up payments to top brand influencers.
London-based XPO pays content creators on behalf of the brands that use them, including TikTok, Nike, Experian, BooHoo, and Estee Lauder.
It launched in the summer of this year and claims to be able to reduce average payment times from 90 days to hours.
He believes there is a mismatch between what big brands and the influencers they use are reasonable payment terms.
As part of the “strategic partnership,” Sonovate, the London and Cardiff-based lender that provides invoice financing for contract workers, will be XPO’s sole financial partner and the companies will combine the technology.
“By combining Sonovate’s industry-recognized built-in fundraising tools and XPO’s easy-to-navigate app, partners help influencers get paid within 24 hours of completing a job,” said Sonovate.
The overall influencer market is now worth around $ 14 billion globally and by 2022 the market will be double its size in 2019, according to industry figures.
Richard Prime, Co-Founder and Co-CEO of Sonovate, commented, “XPO is building a significant first-mover advantage in a market that is massively underserved and extremely scalable.
“The traditional 90-day business payment cycle simply doesn’t meet the expectations of a modern office worker for near-immediate bill payment. “
“Increasingly, companies are recognizing the benefit of using co-workers, such as influencers, to help them engage new customers, but too few of them are set up operationally and financially to manage. changing payment expectations. “
Lotanna Ezeike, Co-Founder and CEO of XPO, said: “The desire of younger people for greater ownership of what they do and how they spend their professional lives has been a major driving force behind the creation. content as a career path. “
“Brands are aware of this change and are exploring how best to work with content creators and make the most of this generation of young people determined to work differently.”
“Our partnership with Sonovate offers brands an interesting alternative to managing several influencers per month and the enormous administration problem that this creates.”
“Not only do we manage financial flows, but we facilitate communication between brands and influencers, ensuring a good working relationship. “