Instant Factoring raises EUR 500,000 in pre-Series A investment round

Instant Factoring, the first Romanian start-up offering online factoring to small entrepreneurs, closed a pre-Series A capital investment round amounting to EUR 500,000 from investors with rich international experience.

“The capital attracted in this round will contribute to the consolidation of our position on the local market by extending the portfolio of clients among micro-enterprises and small companies in Romania, and will be invested in the development of the online factoring platform, and of the strategic branding and digital marketing activities,” stated Cristian Ionescu, CEO & President, Instant Factoring.

This is Instant Factoring’s first round of private equity financing, in addition to the initial capital subscribed in 2018 by the founders with a total value of EUR 500,000. The total capital investment from founders and new shareholders reaches the value of EUR 1 million.

The new investment in Instant Factoring comes from internationally renowned entrepreneurs and investors – Xenofon Vodorouglou, Constantin Goulimis, and EDUCATIVA, a group of social enterprises with a focus on the education field.

Also, in the fall of 2018, Instant Factoring attracted a working capital financing of EUR 1.5 million from an American social impact investment fund, a loan aimed to conduct the factoring financing operations and to purchase the invoices portfolios of the companies.

“Small companies in Romania are facing an acute lack of liquidity in the current activity, a necessity they cannot cover from other sources, and the online factoring offered by Instant Factoring is the quick and handy solution for any of them, through which they can avoid a financial bottleneck and access the much-needed capital for business development,” added Cristian Ionescu.

Instant Factoring supports the development of small companies, with a turnover of up to 2 million euros, providing them with online financing solutions – factoring. The technological platform allows the analysis of the financing invoice within 2 hours for invoices up to RON 10,000 and 24 hours for those up to RON 250,000, and within a maximum of 24 hours, the clients receive the money in their account, for both cases.