Romanian online microfinance startup Instant Factoring expands to Serbia

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Bucharest, Romania, December 10 – (SeeNews) – Romanian online microfinance startup Instant Factoring announced on Thursday that it will expand its operations to Serbia with part of a capital injection of EUR 750,000 (USD 907,400).

The company will use around 350,000 euros from the capital increase to start operations in Serbia, according to a press release.

The equity financing round was signed by the current shareholders of Instant Factoring to help drive the start-up’s rapid expansion.

“We chose Serbia as the first foreign market for expansion, initially because of its similarity to the Romanian market. The lack of alternative financing solutions for small and medium-sized companies outside the banking system, the size of the market, but also political stability were factors that led us to consider it the optimal option, “said Cristian Ionescu, co-founder and CEO of Instant Factoring .

In Serbia, the company’s financing target for the next year is 5 million euros.

Over 50% of the capital injection will be used to increase the financing capacity of Romanian small and micro enterprises (SMEs) by taking out additional credit. The company will provide an annual factoring financing volume of around 45 million euros to support the development of 1,500 medium-sized companies.

“The pandemic increased the liquidity needs of small and medium-sized businesses in Romania, and online factoring has been a solution for them to secure the cash flow needed to continue doing business in such a difficult time,” added Ionescu.

Founded in 2018, Instant Factoring is a fintech online factoring company in Romania that supports small business and micro business development through fast financing solutions.

($ = 0.8899 euros)

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