Instant Factoring becomes first factoring company in Romania to receive funding from the European Investment Fund
Instant Factoring has become the first fintech financial institution and factoring company in Romania to benefit from financing from the European Investment Fund (EIF) after signing a RON 5 million (EUR 1 million) subordinated loan agreement.
EIF representatives conducted direct meetings with Instant Factoring clients to validate the necessity and efficiency of the financial solutions offered by the company.
Additionally, Instant Factoring adhered to the code of good practices of Microfinancing Institutions, developed by the European Commission, and is being evaluated for compliance.
“With the agreement signed today, Instant Factoring will be enhancing both their debt capacity and their institutional capacity in serving the micro and small companies in Romania, helping to drive economic growth in the region,” said EIF Chief Executive Marjut Falkstedt. “With increasing pressure on EU financial resources, the challenge is to put our capital to work efficiently and effectively, to make sure our support reaches the smallest actors in the economy,” he added.
“This funding not only validates our mission to support small and very small, underfunded, and underbanked companies, but also confirms our commitment to implementing the highest standards of management and governance,” stated Cristian Ionescu, CEO of Instant Factoring.
“The funds will be used to expand operational capacity, open new branches, develop the sales team, and invest in technology and software. This support will allow us to increase our lending capacity and better serve the needs of our customers, significantly contributing to Romania's economic development,” he added. The company also aims to expand in the Transylvania and Moldova regions.
At the end of May, Instant Factoring took another important step and launched in the Spanish market with a startup capital of EUR 1.5 million.
The company has been active in the Romanian market for 5 years, during which time it has transferred over RON 800 million to clients' accounts. Just in 2023, Instant Factoring financed over 800 clients, with the total amount reaching over RON 250 million.
Regarding its activity in Serbia, in the first quarter of 2024, the company doubled its number of financings compared to 2023. This year also started promisingly in Romania with a 50% growth.
(Photo source: the company)
