Invoice discounting vs. factoring: All the information you need
Does your business continually experience cash flow problems due to lengthy invoice terms and delayed customer payments? If so, invoice...
top of page
On-demand factoring
Invoices factored from £500 - £200k. Payment terms up to 90 days accepted.
Invoice collection support
Customer invoice payments managed and collected by Penny on your behalf.
Assets stay protected
Unsecured solution. No personal guarantees, debentures or property security.
SPOT FACTORING UK
Penny's approach to invoice factoring
Invoice collection shouldn't eat into your business' day-to-day operations.
With Penny, it's guaranteed not to.
Our invoice factoring solution is a model of selective invoice finance. Unlike full-book facilities that require you to raise your entire sales ledger, Penny offers an account that you can dip in and out of, selecting single invoices to factor as and when you need.
When you're ready to factor an invoice, all you have to do is upload and submit it through the online portal. We'll quickly confirm the invoice details with your customer, and once verified, pay the full invoice amount to your account within 24 working hours.
After that, it's business as usual. Nothing else is required from your side, and when the invoice is due, we'll collect payment from your customer.
Business entity
Limited Company or Sole Trader
HMRC registered
& based in England or Wales
B2B invoices
For delivered goods / completed work
What is invoice factoring?
Invoice factoring is a type of invoice finance that quickly released money locked in outstanding customer invoices.
Instead of waiting for lenghty payment terms to elapse, a business can use factoring to sell customer invoice/s and receive the billing amount in as little as 24 hours. Factoring invoices comes with the added benefit of professional credit control management. After an invoice has been raised, verified and advanced, the invoice factoring provider takes responsibility for collecting payment from the customer, freeing up time and internal resources within a business.
01
Submit invoice
Upload an invoice for factoring through your account portal
02
Track status
Penny contacts your customer to validate invoice details
03
Withdrawal confirmed
Invoice verified with your debtor and factoring agreement approved
04
Get paid
Receive the total value* of your invoice within 24 working hours
*Total invoice value minus Penny's processing fee. Average fee on a 30-day invoice is 5.1% +VAT.
Discover the benefits of factoring invoices through Penny
Customer relationships
Instead of waiting weeks or months for customer payments, you can receive money owed the next working day.
No commitment
No minimum invoice volumes, contracts or notice periods. You can use us as little or as much as you'd like.
3hr lending decisions
Track the status of submitted invoices in real-time through the Penny account portal.
Invoice trading
Instead of waiting weeks or months for customer payments, you can receive money owed the next working day.
Credit control
With one of our account managers dealing with invoice collection, you can quickly reduce internal costs.
Easy access
We make it simple for you to signup and submit invoices. No PGs, no debentures and no property security.
KNOWLEDGE HUB
Read more about small business invoice factoring, costs and fees:
FAQs
Explore frequently asked questions about factoring invoices:
bottom of page