Invoice Discounting: Turn your Invoices into Working Capital

Collateral-Free Working Capital Finance with Invoice Discounting

What is Invoice Discounting?

The objective of a business and its customers in any industry are always in conflict. Businesses would want to receive funds immediately after their product or service gets delivered while their customers want to enjoy a credit period for as long as possible. If you offer friendly credit terms to persuade your customer, it means you will receive funds later and this creates a working capital gap within the organization that needs to be bridged. Having adequate working capital helps businesses expand as they can take on new market opportunities with additional funds on their hands. But conventional working capital products like Overdraft and Cash Credit Facilities provided by Banks require hard collateral and organized financial statements which might be difficult for small businesses. This is where a working capital finance solution like Invoice Discounting comes in. In Invoice Discounting a business can sell goods/services to their customers under an agreed credit period, invoice them and receive funds against the invoice. This invoice can be forwarded to a financing company such as Drip Capital which provides a collateral-free invoice discounting facility for exporters using an online platform where you can upload your invoices. Upon receiving the invoice, Drip Capital finances 80% of the invoice value within 24 hours. When the buyer makes his payment to Drip Capital after his credit period is over, it releases the remaining 20% of invoice value after deducting service and interest charges.

Why Invoice Discounting?

There are certain checks for export business to understand whether it needs Invoice Discounting. Do you want to extend flexible payment terms to your buyers? Does waiting for buyer's payments creates a cash crunch in your business? Are you credit limits from your bank is insufficient/exhausted and do you require more funds to grow your business? Do you want a fast & collateral-free solution? An invoice discounting facility provided by Drip Capital can take care of all these issues with ease and efficiency.

INVOICE DISCOUNTING ADVANTAGES

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Extend flexible payment terms to your buyers


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Get a line of credit over and above your bank’s credit facility


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Spend less time collecting buyer payments


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Never say no for any export order due to lack of working capital

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Unsecured finance solution

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No need to provide any hard collateral

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

Collateral free working capital

Collateral free working capital

Fund your exports growth using your foreign trade receivables.

Credit limit up to $2.5 Million

Credit limit up to $2.5 Million

Get post-shipment export credit line up to $2.5 million.

Competitive pricing

Competitive pricing

Cost of export financing can be as low as 0.7% per month basis credit evaluation.

Paperless, swift, transparent

Paperless, swift, transparent

Use Portal by Drip Capital for faster fulfilment and end-to-end service

Receive cash advance against your trade receivables

Apply Now

Quick facts on Drip Capital

Trusted by more than 1500 Exporters and Importers Globally

₹3500 Cr

of Trade Financed


400+

Exporters


70+

Cities


60+

Countries

Our Partners

eepc
chemexcil
fieo
svb
wells-fargo

Growth Stories

Learn about how we’ve 10xed exporters

Tatva Enterprise LLP

Exporter of Plastic products from Maharashtra

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.

Hiral Parikshit Pawar
Promoter, Tatva Enterprise LLP
7x Increase in Turnover
USD millions
Al Sami Agro Products

Exporter of frozen foods from Andhra Pradesh

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.

Abdul Salam
Promoter, Al Sami Agro Products
3x increase in Turnover
USD millions
Satya Impex

Exporter of Red chillies from Andhra Pradesh

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 75% of those export invoices were financed by Drip.

Thota Rama Krishna
Promoter, Satya Impex
75% wallet share
USD millions
Pari Agro Exports

Exporter of Basmati Rice from Punjab

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.

Varun Sachdeva
Promoter, Pari Agro Exports
4x increase in Turnover
USD millions

In the news

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Experience the power of export financing with Drip capital

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You’ve got questions…. We’ve got answers

What is the application process for Invoice Discounting Facility with Drip Capital for exporters? How long does it take?
How much will you finance per Invoice?
What information do you require from us to process our application?
Do you provide export credit on all goods exported?
Looking for more questions?View All

Invoice Discounting Resources

Export Finance - Why is it required and Types
Export Finance - Why is it required and Types

August 28,2019

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Invoice Factoring: Easy Access to Working Capital for your Business
Invoice Factoring: Easy Access to Working Capital for your Business

October 31,2018

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Government Loan Schemes to Finance your MSME Business
Government Loan Schemes to Finance your MSME Business

January 22,2019

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