Omnicredit launches for the first time in Romania, a digital supply chain financing product for small entrepreneurs

Omnicredit, the fintech that provides online factoring and invoice discounting solutions, launches a supplier credit financing product for small enterprises in any field of activity that want to take on new orders and deliveries. The company marks a first in Romania by pre-financing contracts in an entirely digital process.

At the same time, it reintroduces in its portfolio one of its well-known products, Microcredit Classic, which enables customers to access loans of up to 100.000 RON. Omnicredit estimates for this year a financing volume of over 10 million euros for the two products.

The loan for supplier payments is intended for Romanian entrepreneurs who need financing for business development. As a consequence of cash flow problems and the lack of liquidity, they cannot start or honor new contracts or orders. The solution comes to their aid by prefinancing contracts for new orders or deliveries. The online financing process takes up to 48 hours from the moment the requested documents are uploaded to the platform, which may vary depending on the requested amount, with at least proof of the new order or the contract that will be honored by the pre-financing.

”There is a great need for cash due to the crisis and the new investment projects estimated to be implemented in 2023, especially in construction and production industries. At the same time, I expect the recent turmoil felt in the US and European banking systems will determine the local banks’ reluctance to financing. In the medium term, this situation will decrease risk appetite in the banking area. Small entrepreneurs do not have the liquidity to pay their suppliers on the spot, as it frequently happens, and we are a quick and viable alternative. As opposed to other financing products in Romania, the Omnicredit product is 100% digital, from enrollment to the actions that follow the process of analysis and granting the financing”, declares Elisa Rusu, CEO of Omnicredit.

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Omnicredit conducted a series of surveys on its internal database, comprised of approximately 12.000 clients in different stages, to find out the financing needs of small entrepreneurs in the current period and the given market context. The study revealed that 40% of respondents needed pre-financing of contracts or new orders, and 50% specified the need for microcredit. The latter product was present in the fintech portfolio before the COVID-19 pandemic.

”We maintain our mission to support the micro-enterprise segment as partners for mutual growth. We do this by interacting with our customers, taking an interest in their needs, and diversifying our product offerings. We are launching the supplier credit solution and microcredit of up to 100.000 RON without guarantees to answer these needs. Through the two new products, we target to grant a financing volume of a minimum of 10 million euros this year”, continues Elisa Rusu.

The company owns a financing capital of approximately 6 million EURO from equity sources, associate loans, and a specialized debt investment financing line. This year, as a premiere for a digital financing platform in Romania, the company received a credit line from a Romanian bank.

”This financing capital helps us extend our business and help even more microenterprises. Moreover, we are in the process of approval under the European Code of Conduct for the Provision of Microcredits, so we emphasize the social impact of the beneficiaries of our financing“, concludes Elisa Rusu.