Instant Factoring, the first Romanian fintech to offer online factoring to Romanian entrepreneurs, has closed a round of equity financing worth EUR 750,000.

The round was subscribed by Instant Factoring’s current shareholders to fuel its fast expansion.

The company will use EUR 350,000 of the new funds to launch its operations in Serbia and the remaining EUR 400,000 to increase local operations.

"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.

The management in Serbia will implement its own Instant Factoring business model, with the goal to reach a funding volume of approximately EUR 5 million in 2021.

Instant Factoring will use over 50% of the capital injection to increase the financing capacity of Romanian SMEs by attracting additional loan funds. The company estimates it will be able to provide an annual financing volume on factoring of approximately EUR 45 million, and support the development of 1,500 small companies and micro-enterprises.

andrei@romania-insider.com

(Photo source: the company)