DAI Asset Management (“DAI-AM”) has invested EUR 4 million in RoCredit, a Romanian regulated Non-Bank Financial Institution (NBFI), to help bridge the financing gap for small- and medium-sized enterprises (SMEs) in the country. RoCredit provides financing to support the liquidity needs of underserved SMEs in Romania, and this investment will allow the company to expand the availability of loans to businesses that are unable to access credit through traditional banks.
SMEs play a vital role in Romania’s employment landscape, accounting for two out of every three people employed in the country. However, these businesses often face challenges in accessing funding. While SMEs account for half of Romania’s GDP, the country has the lowest ratio of SMEs per 1,000 inhabitants in the European Union (IFC). There is significant potential for this sector to grow, but it requires access to capital to do so.
Founded in 2007, RoCredit offers a range of financial products to SMEs, which provide services to large corporations, multinationals, and government agencies. Its products include working capital credit lines, loans secured by promissory notes, investment loans, and factoring services, among others. The company specializes in an invoice discount product called a scont loan, which allows businesses to receive payment on orders within one to three days of invoicing, rather than the average of 60 to 120 days.
This is DAI-AM’s 4th investment in RoCredit.
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