“The partnership between Instant Factoring and TechVentures Bank SA, a bank that addresses the SMEs, is an opportunity to bring our 100% digital financing solutions closer to those who need them to sustain their business. Tech Ventures Bank will offer its existing and potential SME clients the possibility to transform their invoices into liquidities in just a few hours via a simple process in which the funding application from Instant Factoring can be initiated from the bank’s website, but also from its branches”, said Cristian Ionescu, Instant Factoring CEO.
According to an analysis made by the White Cart of SMEs for 2020, 98% of the entrepreneurs said they felt the impact of the COVID-19 pandemic and ran into difficulties like the lack of predictability of the firm’s evolution, a decline in domestic demand and the lack of staff.
When the health crisis peaked, 63% of entrepreneurs self-financed their economic activities, with the access to financing being another obstacle for them, and only 3.4% of them utilized factoring services. Depending on the business size, only 2.5% of microenterprises, 4% of small enterprises and 11.3% of the medium enterprises used this solution.
The partnership between Instant Factoring and TechVentures Bank comes as a natural solution to provide access to alternative financing sources to cover the needs of these companies. Therefore, the entrepreneurs can finance their invoices approved for payment by their business partners without waiting to collect them, having access to cash for current remittances and investments. These advantages are also followed by time-saving through the externalization of invoices collection, 52.4% of the entrepreneurs considering that the rapidity of services is the most important criterion when it comes to choosing a financing partner”, adds Cristian Ionescu.
TechVentures Bank is a Romanian universal bank established in 2009 and operating under this name since December 2020, following a rebranding process. The bank has a network of 13 regional units and its assets grew by over 40% in 2021.
TechVentures Bank set out to provide products and financial services that meet the expectations of its clients whose profile is continuously changing.