Two years after its launch, Instant Factoring, the first Romanian fintech to offer online factoring to Romanian entrepreneurs, has closed a round of equity financing worth 750,000 euros, of which 350,000 euros will be invested to launch its operations in Serbia. The round was subscribed by the current shareholders of Instant Factoring with the aim to fuel the fast expansion of the start-up.
“We chose Serbia as the first foreign market for expansion, first due to the similarity with the Romanian market. The lack of alternative financing solutions for small and medium enterprises outside the banking system, the size of the market, but also the political stability were factors that determined us to consider it as an optimal option. Moreover, the local management team has extensive experience in credit risk management and factoring, being made up of top professionals”, said Cristian Ionescu, CEO and Co-founder of Instant Factoring.
Management in Serbia will implement its own Instant Factoring business model, and the market goal in 2021 is to reach a funding volume of approximately 5 million euros.
400,000 euros investment to expand the financing capacity for Romanian SMEs
Over 50% of the capital injection will be used to increase the financing capacity of Romanian SMEs by attracting additional loan funds. Instant Factoring Romania will thus be able to provide an annual financing volume on factoring of approximately 45 million EUR to support the development of 1,500 small companies and micro-enterprises.
“The pandemic increased the need for liquidity of small and medium companies in Romania, and online factoring was a solution for them to ensure the cash flow necessary to continue the activity in such a difficult period. Thus, the volume of financing we have granted in recent months has steadily increased, with an all-time high reached in October, of 2 million EUR. This round of capital will help us continue our mission to support small Romanian companies and local entrepreneurs through access to fast and flexible financing”, added Cristian Ionescu, CEO and Co-founder of Instant Factoring.
Online financing solutions offered by Instant Factoring are addressed to small and medium companies. The platform allows the analysis in an interval of 2 hours for invoices up to 2.000 EUR and 24 hours for those up to 50,000 EUR, and in maximum 24 hours the client receives the money in the account.
