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Romanian fintech Instant Factoring to increase lending to underbanked small businesses in Romania with European Investment Fund support

26 iunie 2024

Deal marks first time a Romanian fintech and factoring company receives InvestEU funding. This agreement was facilitated by the InvestEU programme, which aims to trigger over €372 billion in additional investment over the period 2021-2027.

The European Investment Fund (EIF) signed a RON 5 million (€1 million) subordinated loan agreement with Romania-based fintech Instant Factoring IFN to help it expand lending to small businesses in the country.

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,” said EIF Chief Executive Marjut Falkstedt. „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.”

Instant Factoring Chief Executive Officer Cristian Ionescu said the EIF loan would pave the way for new growth and development opportunities. He also called the support an „important step” in the company’s collaboration with the EIF.

This funding validates our mission to support underfunded and unbanked small and very small businesses,” Ionescu said. „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.”

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Instant Factoring is a non-bank financial institution and fintech factoring platform that offers micro and small companies access to financing. Instant Factoring began operations in 2018 and has grown significantly since then by helping underbanked and underserved companies develop their businesses through 100% digital financial solutions.

The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe’s micro, small and medium-sized businesses (SMEs) by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment.

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for EU policy priorities, such as the European Green Deal and the digital transition.

The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners who will invest in projects using the EU budget guarantee of €26.2 billion. The entire budgetary guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

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Anders Olofsson – former Head of Payments Finastra

Banking 4.0 – „how was the experience for you”

So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”

Many more interesting quotes in the video below:

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In 23 septembrie 2019, BNR a anuntat infiintarea unui Fintech Innovation Hub pentru a sustine inovatia in domeniul serviciilor financiare si de plata. In acest sens, care credeti ca ar trebui sa fie urmatorul pas al bancii centrale?