Instant Factoring, the online microfinance fintech for businesses in Romania, is celebrating its fifth anniversary on the Romanian market. During this time, the company has registered over 10,000 businesses on its platform and transferred approximately 650 million lei to its clients’ accounts.
“When we set out on this journey five years ago, we wanted to be a source of support for every entrepreneur in Romania. Instant Factoring was just a phone call away during times of economic uncertainty, when many businesses were wondering how they could stay afloat. Our digital invoice financing solution
invoice financing also helped those who wanted to invest in new equipment and grow their businesses. "Today, I am proud to say that in its five years of operation, Instant Factoring has provided over 51,000 financing solutions to SMEs, the main engine of development and innovation in any market economy," said Cristian Ionescu, CEO of Instant Factoring.
The top industries that have used Instant Factoring’s services over the past five years include transportation, construction, wholesale and retail trade, small-scale manufacturing, and business services. Of the total amount financed, approximately 80% was directed toward these industries.
The transportation, construction, and retail sectors have faced numerous challenges in recent years, which is why business owners have turned to factoring to cope with the obstacles arising from the pandemic, the war in Ukraine, rising prices, and the labor shortage.
Entrepreneurs in the manufacturing sector, those in professional, scientific, and technical fields, as well as those providing administrative and support services, have also turned to factoring to keep their businesses afloat or to make investments.
The automotive industry came as a surprise, with car dealerships, service centers, and tuning and repair shops seeing a tenfold increase in financing requests over the past year compared to the previous period.
“During high-stakes periods—such as the pandemic, the start of the war in Ukraine, and the sudden spike in fuel prices—we saw high demand from transportation companies, which needed cash to get back on the road quickly. As a businessperson, you must always plan ahead and be prepared for any unforeseen circumstances that may arise. Many of our clients used factoring as a lifeline. The funds were deposited into their accounts within 24 hours, which allowed them to continue their operations. However, we also had entrepreneurs who turned to factoring to secure the necessary funds for investments and business development,” said Cristian Ionescu.
2022 was a record year for Instant Factoring in terms of financial results, a trend that continued into the first half of 2023, with a 70% increase in approved financing requests. In addition, 90% more new clients received financing through factoring this year compared to the same period last year.
“We have transferred approximately 650 million lei into our clients’ accounts. This money has been a lifeline for many companies across our country. Going forward, we aim to strengthen our position without straying one step from our mission: to stand by—in the truest sense of the word—entrepreneurs in Romania,” added Cristian Ionescu.
In 2022, Instant Factoring won, for the second consecutive year, the award for the best digital factoring platform in Central and Eastern Europe, presented by the SME Banking Club Europe.
➡️ Check out the article on startupcafe.ro: https://startupcafe.ro/instant-factoring-implineste-5-ani-650-milioane-lei-conturi-clienti-htm-25058
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