Romanian fintech Instant Factoring IFN to expand its debt and institutional capacity to support small companies

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

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

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.

“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. “it also confirms our commitment to implementing the highest standards of management and governance, meeting EIF’s strict criteria. 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, significantly contributing to Romania’s economic development.”

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. In this role, the EIF contributes to the pursuit of key EU policy objectives such as competitiveness and growth, innovation and digitalization, social impact, skills and human capital, climate action and environmental sustainability and more. 

The InvestEU program 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 mobilize private investments for EU policy priorities, such as the European Green Deal and the digital transition. The InvestEU program brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The program 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 mobilize at least €372 billion in additional investment.  

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