In the first two months since launching, Instantfactoring.com, the first Fintech Romanian factoring company, bought about 300 bills worth over 500,000 euros. The average amount of bills financed during the period is EUR 1600 and the average time from the approval of the invoice to the financing is 23 hours. For the next two months, the company’s representatives estimate double the volume of activity.
According to Instant Factoring, about 150 micro-companies and small companies have registered on the platform in the two months of operation. On average, the company registered about ten requests per day. The top industries in which most customers come from are: trade, distribution, transport, small producers and consultancy.
The average collection time for the purchased bills is between 45 and 60 days, and the grant approval rate was 72%, with funding for 175 companies – customers of the companies registered on Instantfactoring.com being approved. According to the company’s data, the collection rate in the first two months is 100%, and no payment incident has been recorded so far.
“Factoring is one of the most affordable financing solutions for SMEs, being a product through which they actually access their own cash in advance. We are enjoying a very good start and we are prepared to reach a total volume of approximately € 1 million in funded bills in the next two months.We will be working on the rapid development of operations in Romania in the near future, and we are already working on a CEE market by the end of the year by opening an Instant Factoring subsidiary, “said Elisa Rusu, CEO of Instant Factoring.
Instant Factoring aims to convert any invoice with a maximum of $ 10,000 (VAT included) up to maturity of at least seven days and up to 120 days with the help of technology. After the client has loaded the bill on the platform, he receives a response within two hours, and on the second day after the approval of the funding, the bank transfer will be made to his account without the need for any other documents. The cost of the service is a single commission, averaging 3% per month of the total invoice amount, which will be automatically displayed when the invoice is loaded by the customer.