Invoice Discounting Facility for Indian SMEs

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.

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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

How Invoice Discounting Works?

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Submit invoice digitally on Drip's Portal
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Get 80% invoice value in advance
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Buyers pays 100% to Drip capital
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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
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
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Receive cash advance against your trade receivables

Quick facts on Drip Capital

$750 M

of Trade Financed

750+

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

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

In the news

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Tech Crunch
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Fortune India
VC Circle
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Financial Express

Experience the power of export financing with Drip capital

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

It takes just 15 minutes to complete our application form. This will allow us to set up your account. Subsequently, you need to provide us with a list of your buyers. We will be in a position to revert to you with our credit decision within five working days.
What is the application process for Invoice Discounting Facility with Drip Capital for exporters? How long does it take?
It takes just 15 minutes to complete our application form. This will allow us to set up your account. Subsequently, you need to provide us with a list of your buyers. We will be in a position to revert to you with our credit decision within five working days.

Invoice Discounting Resources

Export Finance - Why is it required and Types
Export Finance - Why is it required and Types
Learn More
Invoice Factoring: Easy Access to Working Capital for your Business
Invoice Factoring: Easy Access to Working Capital for your Business
Learn More
Government Loan Schemes to Finance your MSME Business
Government Loan Schemes to Finance your MSME Business
Learn More

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