Instant Factoring expands into Serbia amid rising trend of late invoice payments in the market

Instant Factoring, a leader in the Southeast European fintech market for invoice financing, announced on Friday that it is expanding into Serbia. This decision comes as the total value of invoices funded by the company in the Romanian market has exceeded 55 million euros, and the trend of late invoice payments in Serbia continues to rise.

Active in the Romanian market for over three years, this service will now be available to small business owners and SMEs in Serbia, who will be able to collect on unpaid invoices in just 24 hours using the invoice financing service developed by Instant Factoring. The maximum value of invoices that can be financed through Instant Factoring is 100,000 euros, with a guarantee that funds will reach the beneficiary companies' accounts quickly.

"We are pleased to offer our invoice financing product to Serbian companies as well, and we are convinced that this innovation in the financial sector will support many important companies in the markets where we operate—businesses that the traditional financing sector often neglects or rejects due to the rigid risk models they apply. We aim to serve 1,000 small firms in Serbia and plan to allocate over 10 million euros in financing to the dynamic small business segment in our first year of operations," said Cristian Ionescu, CEO and co-founder of Instant Factoring.

This year alone, Instant Factoring has provided over 30 million euros in financing to Romanian SMEs, helping them turn invoices into cash through a very simple process: it takes three minutes to create an online client account, one minute to upload an invoice, a maximum of two hours to receive a financing decision, and then the money is in the account within just 24 hours.

Business owners simply need to submit an application and the invoice they wish to finance via the online platform www.instantfactoring.rs. There are no limits on the number of invoices that can be financed. The only condition is that the invoices must not yet be overdue. "We admire the entrepreneurial spirit of Serbian business people and hope to support many of them in taking their businesses to a whole new level by accelerating their invoice collections," added Cristian Ionescu (pictured).

A fast and efficient solution for streamlining cash flow

The advantage of the service offered by Instant Factoring in both the Romanian and Serbian markets is that business owners no longer have to wait months to collect payments from clients, which helps streamline cash flow. Furthermore, the service is entirely digital, accessible via computer or smartphone.

"Invoice financing is processed through the Instant Factoring online platform, which won the award for the best fintech digital platform in Southeast Europe in 2018. The platform was developed using cutting-edge technology and a unique internal rating system that uses artificial intelligence for rapid financing decisions. Data and information are collected and processed efficiently, while the internal algorithm is continuously improved. We purchase non-overdue receivables, and the reimbursed amount is 100% of the invoice value, paid within a maximum of 24 hours, minus a minimal factoring fee," explains Marija Grujovic, Managing Director of Instant Factoring.

At the same time, Instant Factoring is committed to supporting micro and small enterprises by providing them with financing whenever they need it, offering a transparent solution that quickly improves their liquidity.

Currently, there are 92,257 micro-enterprises, 11,617 small companies, and 114,721 authorized entrepreneurs operating in Serbia. Even before the COVID-19 crisis, the average payment term for invoices in Serbia was 135 days, and there is currently a growing trend in the number of days invoices are delayed.

Although factoring is not new to the Serbian market, as large companies have previously tried to collect receivables faster through banks, the response has unfortunately not been positive. Banks, as providers of this service, have not extended factoring to small and micro businesses, even though they represent 87% of all active companies in Serbia. For this reason, Instant Factoring has created this online platform that allows small businesses to maintain their liquidity and continue doing business without worrying about collecting receivables.

About Instant Factoring

Instant Factoring was founded in October 2018 by a group of Romanian entrepreneurs with experience in financial services, software development, and investment banking, and it quickly became the market leader in Romania in the alternative invoice financing sector. To date, the company has financed over 3,500 Romanian companies with more than 55 million euros in just 3 years since its market launch.

Since its launch, Instant Factoring has attracted several rounds of capital totaling over five million euros from private investors, as well as investment funds from the USA, the UK, and Romania.

➡️ Read the full article on economica.net: https://www.economica.net/instant-factoring-se-extinde-in-serbia-in-contextul-cresterii-trendului-privind-plata-cu-intarziere-a-facturilor-pe-aceasta-piata_541862.html