Instant Factoring was created for those micro-companies and small entrepreneurs in Romania in need to access fast and flexible sources of financing for their current activity, such as the payment of suppliers, employees, fees and taxes, or to help them acquire new orders. With the help of technology, we give companies access to money when they need it. The financing process is 100% online and involves placing a financing request, evaluating and approving it, and finally transferring the amount of money, without the financing fee, to the customer’s account.
We support entrepreneurs to reach their highest potential and grow their businesses in a heathy way through simple, innovative and 100% digital financial solutions. No hidden costs and no worries, so that their hard work and effort is rewarded accordingly.
What is factoring and who is it for?
Factoring is an easy solution to accelerate a company’s cash-flow, especially for micro-enterprises, by collecting money faster than the 30, 60 or even 90 days payment term agreed previously with the customer. How does it work? The company sells the invoice to Instant Factoring, which, in exchange for a fixed, monthly fee communicated from the beginning, transfers its value within 24 hours. The invoice should meet the eligibility conditions. Factoring is mainly, but not exclusively, addressed to micro-enterprises in all sectors of activity and all geographical locations. With faster access to cash, entrepreneurs can pay suppliers or employees and invest in internal processes or start new projects.
How does Instant Factoring differ from traditional financial institutions and banks?
We eliminate the whole lengthy approval process required during a classic financing: a certain amount and volume of financed invoices, a minimum level of turnover and other required financial indicators, guarantees, lengthy file approval time and all the bureaucracy behind it. Unlike banks and other financial institutions, the invoice is assessed in just two hours and the money is transferred within 24 hours
Instant Factoring Financing
What are the minimum funding requirements?
There are only a few requirements that your company must meet in order to finance your invoices with Instant Factoring: 1. To be based in Romania 2. To have clients from other companies 3. To work with payment terms, issuing invoices with terms payment of up to 90 days
What documents do I need to submit when applying for invoice financing?
In addition to the invoice you want to finance, all we need is a document proving that you delivered the goods or provided the services. That’s all we need!
What is the application process to finance my invoice?
To finance one or more invoices with Instant Factoring, you need to go through a few simple steps that won’t take more than 10 minutes: 1. Create a free account by registering your company ID and your contact details. It only takes 3 minutes 2. Register your client company’s identification details 3. Upload the invoice you want to finance as an image in .jpeg or .pdf format. If you have several invoices issued to the same customer or to different customers, you have to upload them individually 4. You save the invoice identification data, payment term and currency 5. Upload the documents proving the delivery of the goods or the provision of the service covered by the invoice 6. Choose the payment instrument with which the customer will pay the invoice 7. Send the financing request to Instant Factoring. The invoice evaluation process will take two hours from the time the request is sent. 8. Once we approve the financing, we will transfer the full amount of the invoice, without the financing fee, to you within 24 hours 9. That’s it, you’ve got the money and you can use it where you need it most!
Who can apply for invoice financing?
Invoice financing is a suitable solution for your company especially if you have agreed on long payment terms with your customers or process seasonal orders. The speed and flexibility with which you finance your invoices helps you maintain a positive cash-flow and have immediate access to cash to:
Pay suppliers faster than the agreed payment term and get better terms from them
Take new orders from existing customers or new customers
Loyalise existing customers or win new customers by giving them longer payment terms
Pay employees or hire new staff
Pay duties and taxes
Payments and Fees
What are the costs of financing with Instant Factoring?
The cost of financing is a commission from the invoice value, depending on its due date. This is on average 3%. For an invoice that reaches its due date 15 days after the registration on the Instant Factoring platform, your financing cost will be 1.5%, if it is more than 30 days, the cost will be 3%, if it is more than 60 days, 6% and so on. You can find out directly from the website what invoice amount you will receive by using the simulation calculator. It all takes just a few seconds. The cost will always be fixed and transparent and no other fees or charges will be added.
What kind of invoices does Instant Factoring finance?
Instant Factoring buys invoices that are within the payment term (minimum 7 days due) and that are validated by your customer. Invoices from external suppliers are also accepted if they are issued by companies in the European Union that show a high degree of trust and have and an easily verifiable financial history.
Will my relationship with the client be affected?
We assure you that your relationship with your customer will be protected. Our intervention is minimal, we will only contact him to confirm the invoice and make sure there are no problems. After the financing approval we will inform him about the new bank account to which he needs to transfer the payment.
How many invoices can I sell to Instant Factoring?
Unlike banks or other financial institutions, you are not obligated to sell a certain number of invoices. You can opt for the financing of all invoices issued to a customer and get better financing terms.
What happens if my customer does not pay the invoice?
If your client does not pay the invoice within the agreed term, there are several possibilities: 1. we can extend the due date, recalculating the commission, 2. you sell us another invoice for financing (for another customer), from which the cost of the previous invoice can be deducted, or you can choose 3. non-recourse financing. This means it is our responsibility to collect the money, if there are any problems with the payment. Depending on the situation, we can find solutions. It is important to let us know if there are any problems or particularities in the history of the relationship with that client, in order to make the best decision right from the start.
Does Instant Factoring also address Romanian exporters?
Yes, we also support companies that sell their products and services to external markets, as long as they meet the eligibility conditions. Invoices from European Union companies with a high degree of trust and whose financial history is transparent and easy to verify are accepted. Our desire is to encourage and support micro-enterprises, regardless of the field of activity and the market in which they sell their products and services, therefore we are working on the development of export factoring services, to be able to offer them on a large scale.
Why did Instant Factoring reject my application?
Rejected funding applications are related to eligibility conditions. Check if the invoice is within the minimum due date (of 7 days), if it has already been assigned to another factoring institution or if there are any customer-related issues. In any case, we are as transparent as we can be and will let you know the reasons for the rejection, so that the next time you apply for funding you can be sure of the approval.
Do I need to change the invoice data?
No, the invoice remains the same. It will be registered in the platform as an image in .pdf or .jpeg format, with the initial data. Your customer will be informed that the invoice has been funded and will receive a notification with the new account to transfer the money to.
At the moment we only buy invoices issued in lei, but with the development of factoring services for exporters, we will also accept invoices in euro.
How is the due date of the invoice calculated?
The commission is calculated according to the due date of the invoice, taking into account the number of remaining days. If an invoice is due for payment in 30 days, but is registered for financing in the Instant Factoring platform in 15 days after issuing, the fee is calculated on the remaining 15 days.
You'll be amazed by our quickness to respond to your request.
Find out if factoring is the financing solution for your company.