EIF Grants €1 Million Loan to Boost Lending for Romanian Small Businesses Through Instant Factoring

EIF Grants €1 Million Loan to Boost Lending for Romanian Small Businesses Through Instant Factoring

(IN BRIEF) The European Investment Fund (EIF) has provided a RON 5 million (€1 million) subordinated loan to Romanian fintech Instant Factoring IFN, marking the first InvestEU funding for a Romanian fintech and factoring company. This loan will help Instant Factoring expand its lending capabilities to small and underserved businesses in Romania. The funds will be used to enhance operational capacity, open new branches, develop the sales and marketing team, and invest in technology and software, contributing to economic growth in the region.

(PRESS RELEASE) LUXEMBOURG, 24-Jun-2024 — /EuropaWire/ —  The European Investment Fund (EIF), part of the European Investment Bank Group and established to support Europe’s micro, small and medium-sized enterprises (SMEs), has extended a RON 5 million (€1 million) subordinated loan to Instant Factoring IFN, a Romanian fintech company, to bolster its lending capabilities to small businesses. This marks a significant milestone as the first instance of a Romanian fintech and factoring company securing InvestEU funding, a program designed to stimulate over €372 billion in additional investment from 2021 to 2027.

Instant Factoring, established in 2018, is a non-bank financial institution and fintech platform specializing in providing micro and small companies with access to digital financial solutions. This agreement will significantly enhance the company’s capacity to support underbanked and underserved businesses in Romania.

Marjut Falkstedt, EIF Chief Executive, highlighted the importance of this deal, stating, “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.” She emphasized the efficient and effective utilization of EU financial resources to support small economic actors.

Cristian Ionescu, CEO of Instant Factoring, expressed optimism about the growth and development opportunities this loan brings. He described the funding as a pivotal moment 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. He also noted the company’s commitment to adhering to the highest standards of management and governance required by the EIF.

The funds from the EIF loan will be allocated to expanding operational capacity, opening new branches, developing the sales and marketing team, and investing in technology and software. This support will enable Instant Factoring to increase its lending capacity and better meet the needs of its clients, significantly contributing to Romania’s economic development.

Background information

About the European Investment Fund

As of 2 May 2024 the EIF aligns its logo to the EU family, reinforcing its role as a key EU player.

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 digitalisation, social impact, skills and human capital, climate action and environmental sustainability and more.

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 InvestEU programme 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 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.

Press contacts

Daniel Kozak, d.kozak@ext.eib.org , tel.: +352 4379 70905

Website: www.eib.org/press — Press Office: +352 4379 21000 — press@eib.org

Instant Factoring

Toni Andrei, toni.andrei@instantfactoring.com, mobile +40743423401

Website: instantfactoring.com

SOURCE: European Investment Fund