29 March 2018 – Instant Factoring, the first fintech factoring platform in Romania and Eastern Europe, launched its online invoice financing platform www.instantfactoring.com today.
Instant Factoring’s mission is to enable the development of small businesses by providing them with flexible and innovative financing solutions.
Instantfactoring.com provides liquidity to small businesses and micro-companies through invoice financing, turning invoices into cash in less than 24 hours. The company estimates that 1.000 small businesses will use its services by the end of 2018, with an average value of invoice financed of aproximately EUR 1.000.
Instant Factoring chose Romania as its first European market due to its large pool of more than 150.000 micro-companies, the severe lack of financing solutions accessible to the local SMEs as well as the rich professional experience of its founders in the local factoring sector. In Romania, micro-enterprises with annual revenues of up to EUR 5 million represent 98% from all active companies and represent 26% of the overall business revenues of the Romanian economy.
According to Instant Factoring’s SMEs financial performance analysis, the payment terms have increased in 2017 versus 2016, the invoices being paid with an average delay of 80 days over its standard average due date of 60 days. 85% of the invoices are paid with delay, with the agriculture, constructions, distribution, transport, metal works and business services sectors being the most vulnerable and registering the highest delays.
Leveraging the acute need of financing within small businesses, Instant Factoring offers a transparent liquidity solution, aiming to turn into cash any invoice of up to RON 10.000 (aprx. EUR 2.200) in less than 24 hours. The promise of Instant Factoring to its target clients is a credit decision in 2 hours, and in case of credit approval less than 24 hours cash payment of the value of the invoice, without any red tape or cumbersome paperwork required. The ‚all-costs-in’ factoring fee of 3% of the invoice value per month will be transparently visible online upon the clients’ online submission of the invoice.
„We are committed to supporting small businesses by providing liquidity whenever needed. Our technology platform and dedicated customer service team enable us to turn invoices into cash in less than 24 hours. We make financing easy, disrupting the traditional invoice financing sector with friction-free online client on-boarding, 2 hours credit approval, cash in account within 24 hours, real time customer service, and full transparency on pricing. We estimate that 60% of the clients we will serve will be micro-companies with annual revenues from EUR 50.000 to EUR 2 million, liberal professionals (lawyers, doctors, notaries etc) and freelancers, and we target to embark more than 1.000 businesses to our platform before the end of 2018”, declared Elisa Rusu, CEO Instant Factoring.
Elisa Rusu is the CEO of the company and one of the most experienced professionals in the factoring space, previously acting as the Head of Banca Transilvania Factoring (2nd largest factor in Romania), Meridian Leasing and Compania de Factoring. The Board of Directors is formed by Cristian Ionescu (Managing Partner of Chartered Debt Management and ex-CEO of Coface Romania, Bulgaria and Slovakia), Piotr Swieboda (CEO of Inovo Venture Capital Fund Poland) and Alexandru Lapusan (CEO & Co-Founder of the software development company Zitec, and Vice-President of the Romanian Software and IT Services Association).
By the end of the year Instant Factoring targets opening branches in two new Central and Eastern European markets and become a leader in micro-factoring space.
About Instant Factoring
Instant Factoring is the first fintech factoring platform in Romania and a member of Innovate Finance, the London based Global Fintech Association. Through its advanced technology platform www.instantfactoring.com the company is committed to enable the development of small businesses by providing them with flexible and innovative financing solutions. Distinguishing features of the platform include the unique and patented internal credit-scoring tool, leveraging artificial intelligence and predictive analytics to provide fast credit decisions. Data and information is gathered from multiple sources and processed efficiently to rate customer invoices, and provide up front transparency on pricing. The internal algorithm is continuously improving through machine learning, bringing significant competitive advantage to the business.
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