Instant Factoring, the first Romanian micro-financing platform for SMEs, attracts external financing of EUR 1.5 M

Instant Factoring, the first Romanian online micro-factoring company for SMEs, received EUR 1.5 million funding from a US investment fund. The financing together with the company’s shareholders equity, will support the start-up’s expansion in the Romanian market, enabling microfinance operations for a total invoice volume of up to EUR 20 million in 2019. This investment will also support Instant Factoring expansion into other markets in Central and Eastern Europe.

“Attracting this financing empowers us to further support small Romanian companies and brings an important contribution to the development of a strong and stable business environment that is very much needed in our economy and country. The underlying motivation for this financing is the strong social and economic impact of our activity, and also the acknowledgement of the positive impact we have locally and to an Emerging Europe in the future.

It’s important that we attract trusted partners besides us that will assist us in the regional expansion process that we planned on starting over the course of next year”, said Elisa Rusu, CEO and Co-founder of Instant Factoring.

Instant Factoring facilitates the development of small businesses by offering flexible and innovative financing solutions, by transforming due invoices into cash. The credit decision is taken in less than 2 hours due to the advanced technology the platform is based on and the client takes possession of its cash in 24 hours at most. The entire process is fully automated and online without requests for additional documents, making financing easy and disrupting the traditional invoice financing sector. The standard invoice financed by Instant Factoring is up to 10.000 RON, however, financing can be granted for larger invoices by way of personalized offers. Any company regardless of size, field of activity or location can access this micro-factoring service, thus eliminating barriers placed on small businesses that urgently need funds and that traditionally could only access them at great effort or not at all, through classic financing methods.  The ‘all-costs-in‘ factoring fee of 3% per month applied to the total amount of the financed invoice is visible online upon the clients’ online submission of the invoice.

Instant Factoring micro-financing platform targeting small and micro-companies was launched this year in April and during its 7 month activity has financed 250 clients with an approximate invoice volume of  EUR 2 million. Its clients are companies from various industries such as transportation, consulting services, advertising, FMCG, construction and IT.

”We plan to increase our financing operations next year and to diversify our product portfolio for SMEs. We closely follow the needs of this segment of companies and we are permanently connected to technological developments as to provide our customers with innovative and efficient products for their business“, added Elisa Rusu.