Collateral free working capital
Fund your exports growth using your foreign trade receivables.
A Complete Guide to Export Bill Factoring Services in India
Working Capital Finance with Export Factoring to grow your Business
What is Export Factoring?
Export Factoring is one of the fastest and easiest ways to secure working capital if you want to grow your exports business without going through the hassle of securing a loan from a bank. An export factoring solution is generally provided by factoring companies that specialize in foreign trade. Certain other features like foreign currency disbursements and verifying buyers in specific geographies are also features that are unique to an export factoring. At its core, export factoring solutions are foreign bills payable that are sold to an export factor, who makes a partial payment for purchasing the export invoice and makes the remaining payment at the due date, after deducting the necessary fees. Exporters can then utilise these funds at any stage of the business lifecycle, to pay for inventory, raw materials, employees, or any other short-term needs.
Why Opt for Export Factoring?
Exporting goods from India can get fairly complicated. the issue is further compounded when companies exporters are dealeing with unknown or unverified importers in a foreign country. Growing export businesses can offload this risk of non-payment from an unknown buyer to an export factoring firm by simply selling its export trade receivables, receive payment in the short-term and use the cash to cater to another export order.
How to Choose an Export Factoring Company?
Before working with an export factoring company, one should make sure that the company has the requisite skills and expertise to understand and work on export trade transactions. This means the company should; 1. Have the capabilities to work with foreign buyers without any issues concerning foreign bills collections 2. Be capable of making payments in popularly traded foreign currencies 3. Be able to advice on key markets to consider for different industries
Extend flexible payment terms to your foreign buyers
Foreign currency financing
Get a line of export credit over and above your bank’s credit facility
Reduce your dependence on bank loans
Maintain positive cash-flow
Never say no to any export order due to lack of capital
How Does Export Factoring Work?
Submit invoice digitally on Drip's Portal
Get 80% invoice value in advance
Buyers pays 100% to Drip capital
We pay you remaining 20% less our charges
Why Choose Drip Capital?
We are a fintech company focused on solving the working capital problem for emerging market SME exporters by leveraging data and technology. We are re-building core parts of international trade finance infrastructure to level the playing field for small businesses
Credit limit up to $2.5 Million
Get post-shipment export credit line up to $2.5 million.
Competitive pricing
Cost of export financing can be as low as 0.7% per month basis credit evaluation.
Paperless, swift, transparent
Use Portal by Drip Capital for faster fulfilment and end-to-end service
Quick facts on Drip Capital
$5 Billion+
Trade Financed
6,000
Buyers & Suppliers
100+
Countries
100,000
Cross-Border Transactions
Our Partners
Growth Stories
Learn about how we’ve 10xed exporters
Tatva Enterprise LLP
Exporter of Plastic products from Maharashtra
7x Increase in Turnover USD millions
We started factoring our export invoices with Drip in FY17-18 and by 18-19 we were getting almost 25% of our invoices financed by them. With the boost in working capital and increased competitiveness in foreign markets because of better terms of sale, our turnover has shown a substantial increase.
7x Increase in Turnover USD millions
Al Sami Agro Products
Exporter of frozen foods from Andhra Pradesh
3x increase in Turnover USD millions
As an exporter you may have a great offering, but without easy access to short-term finance, you face challenges in scaling and have to let go of many opportunities. Drip Capital’s easy and efficient export finance solution has helped us ensure there is continuous cash flow in our business. Now we can convert possibilities which we otherwise would have passed on. The result has been a 220% jump in sales in FY19.
3x increase in Turnover USD millions
Satya Impex
Exporter of Red chillies from Andhra Pradesh
50% wallet share USD millions
When we started our business in 2017, traditional lending institutes could not keep up with the increasing orders from our buyers. With Drip capital fulfilling our working capital requirement, in FY 19 our business reported massive growth as compared to the previous year, over 50% of those export invoices were financed by Drip.
50% wallet share USD millions
Pari Agro Exports
Exporter of Basmati Rice from Punjab
4x increase in Turnover USD millions
Drip’s factoring service has ensured that our liquidity doesn’t remain tied up in invoices for a long time. Since the start of our collaboration, we have been able to cater to more buyers and our export turnover has increased 4x between FY17-18 and FY18-19.
4x increase in Turnover USD millions