Instant Factoring Balance at first year of activity: 1,930 grants to small companies and micro-enterprises worth 4 million euros

Instant Factoring Balance at first year of activity: 1,930 grants to small companies and micro-enterprises worth 4 million euros

Instant Factoring announce the results of the first year on the factoring market in Romania. In the first year of operation the company granted 1,930 grants to small companies and micro-enterprises in Romania, worth a total of 4 million euros.

For 2019, the company plans to increase its customer portfolio by 300%, with a volume of 15 million euros.

Instant Factoring is the first Romanian online factoring fintech to finance the small local entrepreneurs' bills, an estimated market at 511,800 micro-companies with an annual turnover of up to 500,000 euros.

In the first year of operation, fintech took over 0.1% of this market in the active client portfolio, and growth prospects for this year are tailored to the financing needs of this sector that has so far been poorly served.

"The need for financing companies in Romania is huge, according to data from the World Bank and International Finance Corporation (IFC), estimated at over 40 billion euros or 26% of GDP, according to the NBR, according to the World Bank, only 12,000 companies in Romania banknotes and over 30% of Romanian companies declared in the NBR surveys that access to finance is a pressing and moderately pressing problem. The financial lock-up is also a major cause of stress for Romanian companies, the average duration of billing for economies being doubled over the past 10 years to nearly 120 days, and supplier credit reaching over 70 billion euros by the end of 2017 , a triple value against non-government credit. Instant Factoring has the mission to fill this funding gap by facilitating access to liquidity for small companies to develop and reach the banking sector, "said Cristian Ionescu, Instant Factoring CEO.

The company registered 3,050 billing applications, with a funding rate of 63%. The average purchase price accepted was 2.070 euros, the maximum amount per company invoice online is 100,000 euros, at an average cost of 0.1% per day.

Financing requests came largely from the fields of commerce, transport, construction, restaurants and public food, production (advertising and textiles) and medical and hospital services.

Instant Factoring proposes an increase in the customer portfolio by 300% for 2019 with a grant of € 15 million. The current evolution of activity in the first quarter of 2019 indicates a growth rate of 100% over the quarterly average of 2018.

Instant Factoring's mission is to help small businesses and microenterprises develop and succeed on the market by facilitating access to finance. Instant Factoring finances individual time bills up to 100,000 euros through a fully online process with a 2-hour evaluation and funding decision and the transfer of the amount funded into the client's account within 24 hours.