Case study: How world record holder Andrei Roșu grew his business with factoring

Andrei Roșu needs no introduction. He is a world record holder, an enthusiastic athlete, a devoted father, and a businessman with big dreams. Andrei Roșu founded Filgud, a successful vegan food business, and told us how factoring helped him take his business to the next level.

He took his first steps in business the same way he does everything else: out of passion. Wanting to set an example for his children, Andrei decided to become vegan, and that was a defining moment in the story of what would become Filgud. Because he wanted the most varied menu possible, he signed up for a vegan cooking course.

It wasn't long before he put his new skills to the test in front of family and friends, and they were thoroughly impressed. From there, everything came naturally: Filgud started with love and passion, and with the desire to offer others what he was already giving his family—healthy vegan products, tasty snacks, and food made with care and flavor.

Filgud on major supermarket shelves

A business that knows where it's going grows with confidence. And Andrei has never lacked confidence. Right from the start, he told his partner he wanted to see trucks with the Filgud logo, trucks taking their spreads to as many people as possible in Romania and beyond.

But expanding a business isn't always easy. Andrei knew he needed two things: greater production capacity and visibility in as many places as possible. From the beginning, he and his partner wanted to focus only on production, making sure their products were the best they could be, while also trying to get them onto supermarket shelves.

Filgud’s challenges and factoring as a solution

Andrei knew he needed to increase his company's production capacity. From the very start, demand was higher than Filgud's ability to produce enough.

After researching the market thoroughly, Andrei and his partner Fadia found the equipment their business needed. They never settled for "good enough." Filgud needed equipment specially designed for a business that worked only with fresh vegetables. It may sound like a beautiful story and the natural path of a business built from passion, but even that needs one essential thing: resources.

For Filgud and Andrei Roșu, Instant Factoring showed up at exactly the right time, when every startup needs help. When you're just getting started and you aren't producing huge volumes. When you're just getting started and your profitability isn't turning heads. When you're just getting started and you're using your own money or private investors' money. When you're just getting started and banks don't pay attention to you. That's when you need a solution that works and that you can always reach for. An alternative financing solution. Factoring.

"There is this gap between when we have to pay and when we collect. We collect from supermarkets, and generally from our partners, in about 30-45 days, but many of the payments we have to make are in advance. There are very few suppliers who give you credit. So you're in that spot: you wait to collect the money, then you restock and produce again. You can't leave supermarket shelves empty. You clearly need to have goods on hand all the time. As a business, you've produced and sold. But another order comes in next week, and then you need to take the supermarket invoices to the factoring provider. You get your money right away, and with that money you buy raw materials and produce for the following week. The equation is very simple", says Andrei Roșu.

And that's not all. "For us, factoring is fantastic. It's as if we were paying and collecting at the same time. This is how we can grow without limits", Andrei added.

After turning to Instant Factoring and seeing how easy it is, Andrei is surprised more companies don't use this alternative financing solution:

"There really is a fee for factoring. But the alternative is to bring in your own money or your shareholders' money. Money that's very expensive. To secure financing to buy equipment, we sold part of the company to private investors, and with that money we took the company to another level. You can follow that business model too, selling stakes, but at some point you'll be left with nothing. So that's not how you should look at it. Yes, you have to pay an x% fee on those invoices. But what's the alternative? Giving up x% of your company. You may regret that in 3-5 years", Andrei told us.

For Andrei and Filgud, factoring was the ideal growth opportunity. And now, the road to international expansion seems easier. Because being brave in business means knowing when you need support and finding the partner who can back you in every plan you have.

And Andrei Roșu knows that better than anyone: "You have to create the context where being strong is your first and last option. You need goals you can prepare for thoroughly, goals that transform you. That's the beauty of big goals. In business and in your personal life", says Andrei Roșu.

If you also need an alternative source of financing for your business, turn to us with confidence. Factoring can be a lifeline for businesses facing challenges, but it can also be a growth opportunity for businesses that want to reach the next level.

How does factoring work?

If you have any additional questions, don't hesitate to contact us: 0786 090 382