Factoring made simple: embedding invoice financing into Pennylane

The Pro subscription sat at 17% despite being a vital revenue stream. At the same time, a regulatory change cut the wallet financing repayment window from 120 days to 45, which created an urgent need for an alternative cashflow route for businesses on the platform.

A partnership with Defacto, a factoring provider, made it possible to integrate invoice financing directly into the product, answering the regulatory constraint while keeping people inside the platform.

• Got deep into Defacto's API capabilities to understand what the integration could actually support
• Worked directly with front end and back end developers throughout
• Coordinated with the Invoicing team so the new flow did not disrupt existing workflows
• Ran testing and validation with real businesses
• Wrote detailed user stories, which was a new practice at Pennylane at the time
• Carried out QA checks, and mentored a junior product manager through the project

• Phase 1, launched: Pro subscribers select eligible invoices, complete any missing detail, review the loan terms, and wait for disbursement
• A dashboard showing the status of every loan, backed by regular email updates
• Phase 2, designed but deferred: launching the flow directly from the Pro dashboard
• Phase 3, planned: extending access to free plan businesses with conversion marketing attached

• An end to end cashflow management experience that lives inside the platform
• A new revenue stream opened alongside the existing subscription
• Strengthened Pennylane's position as a comprehensive financial platform rather than an accounting tool