Invoice Financing, Fintech
Instant Factoring proposes pragmatic solutions to small companies to avoid financial bottleneck
Instant Factoring, Romanian fintech start-up, proposes some pragmatic support measures to avoid economic bottleneck, to small and very small companies active in the B2B (business to business) sectors: free assessment of the financial risk of their clients, free consulting on the risks of losing working capital by not collecting the receivables, and access to immediate liquidities by cashing down in advance the outstanding invoices.
The start-up provides micro-businesses and small companies, active in the B2B sectors, free evaluation of the financial stability of 10 existing or potential clients. At present, there is a great deal of uncertainty and instability in all industries, and the risk of not collecting invoices and losing working capital has increased exponentially. In the current economic crisis, a proper assessment of the situation of existing and potential new customers, bundled with other precautionary measures can prevent financial bottleneck.
In addition, Instant Factoring assumes, for all small customers and micro-enterprises in need of support, to provide pre-approval of financing limits for the delivery of goods or services for each individual client. This way small entrepreneurs will know if their potential commercial transactions can be financed, before initiating a commercial relationship.
Instant Factoring offers small companies and micro-enterprises a liquidity volume of RON 10 million per month, for financing invoices before their due date, issued to medium and large companies that pay on longer terms. Access to finance helps small companies avoid blocking their activity, so they can make urgent payments to employees, suppliers and purchase production materials.
The fintech does not focus on risk assessment of the financial statements of the small and very small companies or on their seniority in business. Most of the times, the financial statements of small companies are weak, especially at the beginning of a company’s activity. The client of the micro-enterprise must be a company with a stable financial situation that can pay its debts. Instant Factoring finances between 70% - 90% of the value of accepted invoices, depending on the industry and the clients’ financial soundness of the micro-enterprises.
"We can finance companies active in B2B industries that are not yet completely blocked by major restrictions imposed by the authorities. We take on greater risk and can provide financing in the sectors: telecommunications, data transmission and internet providers, food industry, retail and e-commerce, hardware and IT services, courier and fast delivery and pharma. Thus, the company can cover its urgent payments, but can also compensate for the lack of cash on the business segments where the activity was closed or blocked. Companies avoid completely stopping the activity and disappearing from the market”, said Cristian Ionescu, CEO and co-founder, Instant Factoring.
Instant Factoring’s mission is to support the development of small companies through fast and easy financing solutions using technology. During this period, micro-enterprises are facing an acute lack of liquidity in the current activity, a necessity that they cannot cover from other sources.
Online factoring is a quick and affordable solution for any company to avoid financial bottleneck and for business survival. Instant Factoring's technology platform allows the analysis of the invoice to be financed within a few hours, and in case of financing approval, the client receives the money in maximum 24 hours.