Instant Factoring IFN has received €1 million in funding from the European Investment Fund. The Romanian fintech is expected to support lending to small businesses.

The European Investment Fund (EIF) signed a €1 million subordinated loan agreement on Monday, June 24, with the Romanian entity Fintech Instant Factoring IFN.

With the funds received from the European Investment Fund (EIF), Fintech Instant Factoring IFN is expected to expand its lending to small businesses across the country, the two entities announced in a press release.

Instant Factoring is the first online micro-factoring fintech company in Romania dedicated to small businesses and micro-enterprises, and is a member of the London-based European fintech association Innovate Finance. Instant Factoring is a non-banking financial institution (IFN) registered with the National Bank of Romania. By launching the online factoring platform www.instantfactoring.com, the company aims to support the development of small businesses through fast and easy financing solutions powered by technology.

Funding

"Through the agreement signed today, Instant Factoring will increase both its lending capacity and its institutional ability to serve micro and small companies in Romania, contributing to stimulating 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 effectively and efficiently to ensure our support reaches the smallest players in the economy," she added.

Instant Factoring is a non-banking financial institution and a fintech factoring platform that provides micro-enterprises and small businesses with access to financing. The company began operations in 2018 and has grown significantly since then, helping underbanked and underserved companies grow their businesses through 100% digital financial solutions.

New opportunities

Instant Factoring CEO Cristian Ionescu stated that the EIF loan will pave the way for new growth and development opportunities. He called the support an "important step" in the company's collaboration with the EIF.

"We are honored that Instant Factoring is the first fintech and factoring company in Romania to receive funding from the InvestEU program, managed by the European Investment Fund. This funding not only validates our mission to support underfunded and underbanked small and micro-enterprises, but also confirms our commitment to implementing the highest standards of management and governance," he said.

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