Romanian fintech startup Instant Factoring, founded in 2018 by Cristian Ionescu and Elisa Rusu, has received a subordinated loan of 5 million RON (1 million EUR) from the European Investment Fund (EIF) to provide further credit to micro-enterprises and small businesses in Romania.
According to a press release sent by the EIF to StartupCafe.ro, the agreement with Instant Factoring marks "the first time a Romanian fintech and factoring company has received InvestEU financing," a European Union facility that aims to trigger over 372 billion EUR in additional investment across Europe between 2021 and 2027.
The Romanian fintech will thus expand its "lending and institutional capacity to support micro and small companies with the help of the EIF."
The subordinated loan from the EIF "helps increase lending to underbanked businesses in Romania," the Luxembourg-based EU fund stated.
Instant Factoring is a non-bank financial institution and a fintech factoring platform that provides micro and small companies with access to financing. The Romanian NFI began operations in 2018 and has grown significantly since, helping underbanked and underserved companies grow their businesses through 100% digital financial solutions.
"The funds will be used to expand our operational capacity, open new branches, develop our sales and marketing team, and invest in technology and software. This support will allow us to increase our lending capacity and better meet our clients' needs, contributing significantly to Romania's economic development. This financing represents an important step in our collaboration with the EIF and paves the way for new growth and development opportunities in the medium and long term," said Cristian Ionescu, CEO of Instant Factoring.
"Through the agreement signed today, Instant Factoring will increase both its lending capacity and its institutional capacity to serve micro and small companies in Romania, helping to stimulate economic growth in the region. 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," added EIF Chief Executive Marjut Falkstedt.
Instant Factoring is the first online micro-factoring fintech company in Romania dedicated to small and micro-enterprises and is a member of the London-based European fintech association Innovate Finance. Instant Factoring is an NFI registered with the National Bank of Romania. Instant Factoring has won the "Best Digital Factoring for SMEs" award in Central and Eastern Europe for three consecutive years, granted by the SME Banking Club Europe.
➡️ Read the full article on startupcafe.ro: https://startupcafe.ro/startup-romanesc-instant-factoring-imprumut-european-1-milion-euro-finantare-27476
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