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.
STARTUP FINANCE UK
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.
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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.
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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.
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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.
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After the invoice gets sold, the provider takes ownership of the debt and becomes responsible for the collection of payment.
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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.
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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.
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No account setup or monthly subscription costs, just one processing fee each time you raise an invoice.
01
Submit invoice
Upload an invoice for factoring through your account portal
02
Track status
Penny contacts your customer to validate the submitted invoice details
03
Withdrawal confirmed
Invoice is verified and a no-obligation quote with processing fee is offered
04
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.
FAQs
Explore frequently asked questions about Penny's invoice finance solution for startups:
