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The Funding Fred lender guide

Penny invoice finance review

Penny offers spot invoice finance, letting businesses select individual invoices to fund rather than committing an entire sales ledger. This guide sets out the published product mechanics, eligibility criteria and costs so business owners can judge fit before requesting a written quote.

By Funding Fred · Sources checked 19 September 2026

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Our enquiry compares selected Funding Fred partners. It is not an application directly to Penny. Funding Fred is an introducer, not a lender.

Potential fit

Who could consider Penny?

  • Limited companies, partnerships or sole traders that issue B2B invoices for goods or services already delivered, provided they meet Penny's registration and location criteria.
  • Businesses that are HMRC registered and based in England, Scotland or Wales, if their trading structure matches those Penny lists as eligible.
  • Firms wanting to fund one invoice at a time rather than their whole ledger, where invoices sit within agreed payment terms and meet the stated £500 minimum value.

Worth weighing up

When to consider other options

  • If invoices are for consumer sales rather than B2B trade, since Penny's published criteria specify business-to-business goods or services.
  • If a business needs to fund invoices below the £500 minimum threshold, as these fall outside Penny's stated scope.
  • If a business is based outside England, Scotland or Wales, or isn't HMRC registered, since these are stated location and registration requirements.

Understand the offer

Costs and repayments

Penny's published information confirms it verifies selected invoices and then collects payment directly from the end customer once an invoice is funded. Penny handles collection of the funded invoice; the business retains its wider commercial relationship with the customer.

Specific fee percentages, discount rates or service charges are not detailed in the information reviewed here. Anyone considering this facility should request a written quote directly from Penny to see the exact cost structure that would apply to their invoices, rather than relying on general assumptions about invoice finance pricing. For background on how invoice finance charges are typically built up across the market, see this guide to invoice financing costs in the UK.

Penny states there's no long-term usage commitment tied to this spot facility. That flexibility relates to whether a business must keep using the service going forward, it does not remove the obligations attached to invoices already funded. Once an invoice is selected and advanced, the funding arrangement and repayment terms for that invoice still apply in full.

Eligibility and application

Eligible applicants are limited companies, partnerships or sole traders that are HMRC registered and based in England, Scotland or Wales. Invoices put forward must relate to B2B goods or services that have already been delivered and must fall within agreed payment terms, with a minimum invoice value of £500.

Applications would need to go through Penny's own channel, where invoices are submitted for verification before funding is agreed. Meeting the baseline criteria listed above does not guarantee approval, Penny still assesses each invoice and business individually before releasing funds.

Advantages to weigh up

  • Businesses choose which specific invoices to fund, rather than being required to place an entire sales ledger under a facility.
  • Penny handles verification and collection directly from the end customer, removing that step from the business's own credit control workload.
  • No long-term commitment to keep using the service is stated, giving businesses flexibility over when and whether to fund future invoices.

Limitations to understand

  • Exact pricing, discount rates and fees are not detailed in the published information reviewed; a written quote is needed to confirm actual costs.
  • The maximum invoice value fundable is not confirmed here due to inconsistencies in published figures, so businesses should verify current limits directly with Penny.
  • Once an invoice is funded, the obligations tied to that specific invoice remain in place even though there's no requirement to keep using the service long-term.

Look at the wider picture

Comparing the alternatives

Spot invoice finance is one structure within a broader invoice finance market, and it differs meaningfully from whole-ledger facilities or confidential arrangements where customers are unaware funding has taken place. Businesses should compare how each provider handles invoice selection, collections and minimum values before assuming products are interchangeable. Background on invoice financing explains how these mechanics generally work across providers.

Because Penny collects directly from customers on funded invoices, this differs from invoice discounting facilities where the business retains collection responsibility. Businesses weighing up options should also read up on invoice discounting versus factoring to understand how collection visibility and control can vary between structures, and should always request a like-for-like written quote before comparing costs. General background on the invoice finance market is also available at funding options.

Cynergy Business Finance

receivables finance

Scope: UK small and medium businesses.

Read review

Aldermore

invoice finance

Advance: Up to 90% of eligible invoice value.

Read review

Investec UK

invoice finance

Structure: Tailored to the company’s working-capital needs.

Read review

Product features checked against each provider’s UK website. These are comparison pointers, not a price ranking or a promise of eligibility.

A little more clarity

Your Penny questions, answered

Costs, eligibility and the details to check before applying.

It's a facility where a business selects individual invoices to fund, rather than placing its whole sales ledger under one ongoing arrangement, subject to Penny's stated eligibility criteria.

How we put this guide together

This is a review of published UK product information, not a customer experience or a hands-on test. We have not assigned a star rating. This guide focuses on Penny — spot invoice finance. Other products may have different terms.

Sources checked 19 September 2026. Your written offer determines your actual costs and conditions.

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This is a Funding Fred enquiry, not a direct Penny application. Finance is subject to status and provider criteria.

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Penny invoice finance review: Costs & Eligibility