Penny Invoice Finance Review
Penny is a UK fintech offering selective (single) invoice finance. Rather than advancing a percentage against your whole sales ledger, it buys 100% of an individual invoice of £500 to £500,000 for one fee, with no minimum invoice volumes, contracts or notice periods. It works with sole traders, partnerships and limited companies, pays new users within 24 hours, and does not publish its fee percentage.
What this page covers
This page covers
Penny selective invoice finance: how it works, eligibility, pricing structure and small-business and freelancer focus
Not covered here
Whole-ledger factoring and bank facilities (see /providers/), general invoice finance education (see /guides/), sector pages (see /industries/)
Key Facts
When Penny Invoice Finance Fits
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Freelancers and micro-businesses with £50k-£250k turnover issuing B2B invoices
Penny takes sole traders and partnerships as well as limited companies and has no minimum volume, so it suits businesses well below the published minimums of whole-ledger funders such as Close Brothers (£750,000 turnover).
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Tech consultancies, creative agencies, and service businesses that need same-day decisions
The platform uses automated credit scoring and digital verification, so new users are paid within 24 hours, against the 10 to 15 working days a high-street bank facility such as Lloyds Bank Invoice Finance typically takes to set up.
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Businesses uncomfortable with traditional relationship banking or lengthy paperwork
Penny's app-based interface and minimal documentation requirements suit founders who prefer self-service digital finance over branch visits and account manager calls.
When to Look Elsewhere
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Manufacturing or distribution businesses invoicing over £500k monthly with complex supply chains
Better fit: Close Brothers. Traditional providers offer dedicated relationship managers and sector expertise that fintech platforms typically cannot match at scale.
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Recruitment agencies needing payroll funding and back-office services
Better fit: Sonovate. Sonovate specialises in recruitment sector funding with integrated payroll and contractor management, which general fintech platforms lack.
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Businesses seeking the lowest possible service fees on high volumes
Better fit: Aldermore. High-volume clients often negotiate better headline rates with established banks than fintech providers can offer on smaller facilities.
How Penny Invoice Finance Compares
| Provider | Type | Min facility | Fee from | Advance to | Speed |
|---|---|---|---|---|---|
| Hydr | selective | No minimum | Fixed fee | 100% | Same day to 24 hours |
| Triver | selective | No published minimum | rates vary | 85% | 1 day |
| Pulse Finance | both | £200k (£1m+ turnover) | Not published | 90% | 24 hours once live |
vs Hydr: Hydr pays 100% of invoice value minus a fixed fee with no retention, while Penny buys the whole invoice for one fee upfront.
vs Triver: Triver also funds individual invoices for limited companies and LLPs, whereas Penny also takes sole traders and partnerships and buys the whole invoice for one fee.
vs Pulse Finance: Pulse runs whole-ledger facilities of £200k to £5m for companies turning over £1m or more, so it serves much larger businesses; Penny funds one invoice at a time with no minimum volume.
Illustrative worked example
Hypothetical: a freelance IT consultant raises a £10,000 invoice on 60-day terms
Penny buys the whole £10,000 invoice and pays it, less its single fee, within 24 hours for a new user, then collects from the customer. There is no separate service charge or discount charge and no facility to keep open. Penny does not publish its fee percentage: it sets it per invoice from your customer and the payment terms, so ask for the fee in pounds before you submit. Not a real client.
Setting Up With Penny Invoice Finance
- 1
Digital application
Complete the online application through Penny's platform, then submit the invoice you want funded. Penny says registering and submitting an invoice takes under 10 minutes.
- 2
Automated credit assessment
Penny checks the invoice and your customer, using Open Banking to verify details, and gives you a no-obligation quote for that invoice.
- 3
Go live and draw funds
Once the invoice is approved, Penny pays you within 24 hours as a new user, and in as little as two hours once you are set up. You choose which invoices to fund, with no minimum volume.
FAQs
Does Penny have a minimum facility size?
No facility minimum: Penny funds single invoices, and the invoice must be worth £500 to £500,000. It sets no minimum invoice volume. Whole-ledger funders work differently, often with published turnover minimums (Close Brothers and Aldermore both £750,000).
How does Penny's technology platform actually speed up funding decisions?
Penny uses Open Banking connections and accounting software APIs to verify trading history and debtor payment patterns automatically, replacing manual document review. Credit decisions use algorithmic scoring of your debtor ledger rather than human underwriters assessing paper applications. New users are paid within 24 hours of approval, against the 10 to 15 working days a high-street bank facility typically takes to set up, though an unusual invoice may still need a manual check.
Can I use Penny if my clients are other small businesses rather than large corporates?
Yes, provided the invoice is a B2B invoice for goods or services already delivered. Penny prices each invoice on your customer and the payment terms, so an invoice to a small or newer business may carry a higher fee or be declined, where a relationship-led funder like Close Brothers might use more discretion on a whole ledger.
What happens if I outgrow Penny's platform and need a larger facility?
Penny funds invoices up to £500,000 each, but if you want every invoice funded continuously, a whole-ledger facility from a provider like Barclays Invoice Finance or Secure Trust Bank can work out cheaper per pound. Penny has no contract or notice period, so moving on is simple; a whole-ledger facility usually has a minimum term and notice period, so check those before you sign.
Our Verdict
Disclosure: Adam Parker, the author of Market Invoice, spent over three years as managing director of Penny. Bear that in mind when reading this verdict.
Penny is aimed squarely at small businesses and freelancers that want a fast, simple, digital invoice finance experience. The low barrier to entry and fintech approach make it accessible for businesses that find traditional providers too slow or too demanding. Larger businesses needing substantial facilities will want to look at more established providers.
Sources: Penny (buys 100% of the invoice for one fee, 24 hours for new users, two hours after) · Penny invoice finance eligibility (£500 to £500,000, sole traders, partnerships and limited companies) · Penny spot invoice finance (no minimum volumes, contracts or notice periods)
Founder & Managing Director, Muswell Rose, founder and PSC of Best Business Loans Ltd
Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind Market Invoice. He spent over three years as managing director of Penny, a UK invoice finance business, and his career runs through insurance, mortgages, commercial finance and fintech lending. He writes the Market Invoice library.
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