When we created Penny, it was with a single vision in mind - to give small businesses financial freedom.
One of the biggest challenges of growing a business is the struggle of maintaining a regular income stream while waiting for invoices to be paid. Lack of cash flow = lack of growth, and Penny’s original raison d'etre was to change that dynamic.
Indeed, hundreds of businesses use Penny as their go-to cash flow solution, by funding their invoices as and when they need to.
But one thing we’ve come to realise is that quick cash flow isn’t the only driver for businesses using the service.
In what has been an extraordinary year for everyone due to the pandemic, here are 3 (somewhat surprising) ways Penny was able to elevate small businesses in 2020:
Removing the frustration of late payments and chasing invoices
We talk to our customers all the time and many tell us that a big part of the appeal of using Penny is that it cuts out the time, hassle and cost of chasing invoices and late payments.
This is supported by research from online bank Tide, which found that on average, small and medium sized businesses are chasing five outstanding invoices at any one time, with an average of £8,500 being owed and 1.5 hours dealing with the associated admin. That equates to an awful lot of unprofitable time and money hanging in limbo!
Reassurance against uncertainty
Another interesting trend is that Penny is not exclusively used by cash-poor businesses or those otherwise facing financial hardship.
In fact, overall 15% of businesses that use Penny do so to mediate risk from insolvency and liquidity of companies in their wider supply chain, particularly after the headline-grabbing collapse of the Arcadia Group and Debenhams’ imminent demise.
Penny Quick Quote
If the solvency of a debtor is a concern, Penny’s quick quote tool enables you to pre-screen companies to see their financial security. It also instantly tells you in principle if we will be able to finance an invoice for that particular debtor. Handy eh?
To use the tool, just log in to your Penny account (it’s free to register here if you don’t have one), Penny will run a few checks and confirm whether we can advance invoices for that client.
We’ve already talked about our mission to give small businesses the financial freedom to get where they want to be. It has been truly rewarding to actually see some of this growth in action!
Many of our clients are regularly offered work on 60 or 90 day terms and tell us that if it wasn’t for Penny, they simply wouldn’t be able to take it. Penny assures them of that income up front and means they don’t have to needlessly turn away work or lose out to competitors who happen to have more cash in the bank.
We’ll leave you with an inspiring tale of one e-commerce business who uses Penny to get paid instantly and is then able run "buy now, pay later" offers to prospective clients. That’s true entrepreneurial spirit right there!
We would like to thank all of our customers and partners for working with us in 2020, we know it has been a difficult and frustrating year for many, in all sorts of ways.
We look forward to growing the Penny community in 2021, helping even more businesses achieve financial freedom. We are also excited to share some exciting developments - so watch this space. Happy New Year!