Instant Factoring IFN, a pioneering Romanian FinTech firm, has recently secured a significant financial boost.
The European Investment Fund (EIF) has extended a subordinated loan worth €1m to facilitate the expansion of Instant Factoring’s lending services to the nation’s micro and small enterprises.
This €1m investment marks a historic moment as it is the first time a Romanian FinTech and factoring company has received funding under the InvestEU programme. The programme itself is ambitious, aiming to catalyse over €372bn in additional investments between 2021 and 2027.
Instant Factoring IFN operates as a non-bank financial institution, leveraging its factoring platform to provide quick access to funds for micro and small companies. Since its inception in 2018, Instant Factoring has made significant strides in addressing the financial needs of underbanked and underserved businesses in Romania, delivering solutions entirely through digital channels.
Marjut Falkstedt, CEO of the EIF, explained, “With the agreement signed today, Instant Factoring will be enhancing both their debt capacity and their institutional capacity in serving the micro and small companies in Romania, helping to drive economic growth in the region.
“With increasing pressure on EU financial resources, the challenge is to put our capital to work efficiently and effectively, to make sure our support reaches the smallest actors in the economy.”
Cristian Ionescu, CEO of Instant Factoring, commented on the impact of the EIF loan, stating that it would pave the way for new growth and development opportunities. “This funding validates our mission to support underfunded and unbanked small and very small businesses.
“it also confirms our commitment to implementing the highest standards of management and governance, meeting EIF’s strict criteria. 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 enables us to increase our lending capacity and better serve our clients’ needs, significantly contributing to Romania’s economic development.”
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