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Invoice finance for startups |

Product Features
Financing a startup through traditional avenues is challenging, as new businesses often lack the trading history and collateral that these lenders require.

Penny offers an alternative. Our invoice finance solution for startups leverages outstanding B2B payments to provide immediate cash for growth. 

Keep your business moving forward on your terms.
Accessible account setup

Startups of all sectors. No minimum turnover or trading history to open a free Penny account.

Scaleable finance

Invoices from £500 - £200k accepted. Available funding grows in tandem with your startup.

Tailored for startups

Non-homeowners welcome. No personal guarantees, debentures or property security required.


Penny's approach to invoice factoring for startups

Having scaled from a tech startup, we understand the unique needs and challenges facing early-stage ventures.

Proper financial management and healthy cash flow are key success factors for startups, but securing adequate funding to support new business growth remains a challenge in the UK.


We developed Penny to serve the underserved micro and small business community. Our tech-driven invoice factoring solution provides quick access to money locked in outstanding invoices, relieving the stress of managing late payments and collections. 

Unlike bank loans or overdrafts, we don't base account approval on trading history or minimum turnover figures. If you meet the criteria below, you can become a free Penny user today.

Business entity

Limited company or sole trader

HMRC registered

& based in England or Wales

B2B transactions

Outstanding invoices for delivered goods / completed work

"I couldn't speak more highly of Penny. Yes their fees are probably higher than mainstream factoring companies, but they are great for startups who cannot obtain finance."

Warren Taylor

What is startup factoring?

Startup invoice factoring is a type of invoice finance available to early-stage and scale-up businesses. This funding solution enables companies to sell their outstanding customer invoices to a factoring company in return for fast access to cash.

After the invoice gets sold, the provider takes ownership of the debt and becomes responsible for the collection of payment.

Compared to borrowing money through business loans, this funding option is popular among startups. It offers less risk, a more accessible application process and additional credit control support.

How does invoice finance for startups work?

Penny's invoice finance solution works flexibly around your startup's needs. 


With our tech-driven model of selective factoring, you choose which invoices to fund and when.


Once you've registered your account, select and submit your invoice and we'll advance the total value in 24 hours. 

No account setup or monthly subscription costs, just one processing fee each time you raise an invoice.


Submit invoice

Upload an invoice for factoring through your account portal


Track status

Penny contacts your customer to validate the submitted invoice details


Withdrawal confirmed

Invoice is verified and a no-obligation quote with processing fee is offered


Get paid

Accept the fee and receive the total invoice value* 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 Penny's invoice finance solution for startups 

Working capital support

Inject cash into your startup and cover day-to-day operational costs with greater ease. 

Reduce late payment risk

Utilise Penny's collections department to safeguard your startup from late paying customers.

No equity dilution

Access capital without diluting ownership or control in your new business. 

Gain a competitive advantage

Improve your cash flow and offer more competitive terms to attract new business partnerships

Improve your financial forecasting

With a steady and reliable cash flow comes greater financial predictability.

Transparent pricing you can trust

Understand the costs associated with Penny's startup factoring client support team.


  • What types of businesses can use Penny?
    Sole Traders and Limited Companies registered in England and Wales.
  • Are my invoices eligible for financing?
    Your invoices could be eligible for financing if they meet the below criteria: B2B invoices for completed work and/or delivered goods Minimum invoice value of £500 Maximum invoice value of £200,000
  • Do you require accounts/bank statements?
    No, unlike the majority of other UK lenders, we do not ask for business account records or bank statements. Our model of invoice finance utilises technology to provide fast funding, and all we need from you is: Submitted invoice Debtor contact details (email or mobile) to verify the submitted invoice
  • What is the difference between a Penny and Penny Plus account?
    A Penny account is a free member profile that gives you complete access to our selective invoice finance product. You can register your profile online in just a couple of minutes, and after completing Identity Verification, you can begin submitting invoices for funding straight away. Penny Plus will become our paid monthly subscription service, however this is still under development and not currently available.
  • What is invoice finance?
    Invoice finance is an umbrella term for funding that enables businesses to borrow money against the amounts due from their customers. Lenders offering this model of finance advance a percentage of the requested invoice value, in return for a small fee. The main types of invoice finance include invoice factoring, invoice discounting and selective invoice finance.
  • How does invoice financing work with Penny?
    Penny offers selective invoice finance, driven by technology. Unlike traditional models of financing, our UK spot factoring solution offers businesses a streamlined experience without requiring long-term commitments or lengthy paperwork. Penny is unique in that it has been developed for inclusivity, helping traditionally underserved business types (sole traders, micro-businesses etc.) accelerate cash flow with payment terms that benefit their growth. With flexibility at the core, we give businesses a centralised platform to select and advance invoices with ease. Leveraging technology, we provide real time data so that Penny users can check the status of their invoices at any time, providing decisions in under three hours. Once the invoice details have been verified, Penny pays 100% of the invoice value into the registered business bank account, minus a small fee.
  • Who can I invoice with Penny?
    Penny advances B2B invoices to Limited Companies. In some circumstances we may be able to consider other business entities, please contact us to discuss your needs.
  • Can I retain credit control for submitted invoices?
    At Penny, we take responsibility for collecting payment from your customers. Relinquishing credit control enables you to receive the total invoice value upfront, and reduces time spent within your business on payment processes.
  • What happens if I have already invoiced a client myself?
    You will need to raise a new invoice through Penny. After setting up your account, your account manager will advise you on how to credit note the original invoice with your debtor.
  • Can I use Penny to pay my bills? (Also known as reverse invoice financing)
    No, we only facilitate forward invoice financing on goods / services supplied.
  • What contact information do you need for my customer?
    When you are completing your customer's details, it is best to provide contact details of a member of the accounts team if possible, rather than a generic accounts email address. This expedites validation of the invoice, so you get paid faster.
  • Can I invoice my own company, or a company within my group?
    No, you can not have any business interest in the company you are invoicing.
  • What is the Penny Quick Quote tool?
    Our Quick Quote tool is featured within your account dashboard under 'Get Started'. To use it, simply enter your customer's company name and we'll run a couple of quick checks to confirm whether they're eligible. Bear in mind that Penny's algorithm looks at the most recent data available, so even if we can't offer invoice factoring on an invoice for a particular company today, that could change in the future.
  • I got an approval with Penny Quick Quote, however my invoice has been rejected, why?
    The Penny Quick Quote tool only considers the invoice amount and the debtor (the company paying the invoice). However real-time decisions also look at other factors, including the terms and nature of the invoice. Please get in touch with a member from our client support team for more details.
  • My invoice has been approved, what happens next?
    Once Penny has approved your invoice and it has been issued to your customer, a member of our team will quickly get in touch with them to validate the invoice and get your funds advanced. The wide majority of transactions are validated in under 3 hours, and paid out within 24 working hours.

Explore frequently asked questions about Penny's invoice finance solution for startups:


Explore Penny's UK startup factoring solution today, it's free 

£500 - £200K transactions

Invoice collection support

No-obligation quotes

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