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
Extend flexible payment terms to your buyers
Get a line of credit over and above your bank’s credit facility
Spend less time collecting buyer payments
Never say no for any export order due to lack of working capital
Unsecured finance solution
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
Fund your exports growth using your foreign trade receivables.
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
Trusted by more than 1500 Exporters and Importers Globally
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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.
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.
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.
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.
