According to Instant Factoring, the first Romanian online micro-factoring company in the first half of the year, the volume of processed financing requests increased fivefold compared with the second half of 2018.
For the second half of the year, the company expects to maintain the growth trend in the amount of granted funding. The financial objective for the year 2019 is the achievement of a volume of funds granted to micro-enterprises in Romania amounting to EUR 15 million.
From centralized company data, the average amount of funding for an invoice was about 2300 euros in the first part of the year, with an average payment term for invoices accepted for funding over the 32-day period.
In terms of frequency, Instant Factoring's funding requests in the first half of the year came from industries such as commerce and distribution (22%), transport (19%), services provided to businesses (18%) and construction (9% %).
"In addition to the sectors with intensive financing needs, we note an increase in funding requests from micro-companies in the services sector, where we find a significant number of management or financial consultancy firms, advertisers and others. Factoring solutions are perfectly applicable in this area and cover the need for short-term cash, given the long payouts of their clients, large companies and generally stable but who pay hard. In fact, it is one of the most profitable industries at the level of micro-enterprises with a turnover of up to 500,000 euros, with 4.65 billion RON profit at a turnover of 11.66 billion RON, from the preliminary public data valid for 2018 " said Adina China-Birta, Country Manager of Instant Factoring.
According to representatives of Instant Factoring, the most important industries in which debtors come from: transport (18%), commerce (18%), services provided to enterprises (7%), constructions (7%), equipment and metallurgy (6% (17%), commerce (17%), transport (11%), metallurgy (9%), equipment (5%) and retail (5%).
Instant Factoring's mission is to facilitate the development of small businesses by providing them with flexible and innovative financing solutions by converting cash-in invoices into liquidity. The financing decision is taken within an average of 2 hours, thanks to the advanced technology the platform has, and in maximum 24 hours the client receives the money in the account. The entire process of risk assessment and operations management is automated and fully online, all being carried out quickly and transparently and without requiring additional documents for amounts up to $ 50,000. On the whole, Instant Factoring finalizes online invoices with individual values up to 100,000 euros.
