Invoice Factoring for Indian SMEs

Learn how Export Invoice Factoring can grow your business

What is Invoice Factoring?

One of the fastest and easiest ways to offset the impact of outstanding account receivables on your cash flow is by selling your export invoices at a discounted rate to a factoring company like Drip Capital. In exchange, you get upto 80% of your export invoice value on the day of shipment, rather than waiting for the complete payment from your buyer at the end of the credit period. Drip Capital, the factor, takes over the responsibility of collecting payments from your buyers so that you can focus on your business. Once the credit period is reached, the buyer pays the full amount to Drip Capital and you get the remaining 20% minus the factoring fees. This is called Invoice Factoring, sometimes also referred to as Invoice Discounting or Bill Discounting. Drip Capital’s Invoice Factoring solution helps bridge the credit gap between small and large enterprises by making it easier for an SME to gain access to export finance without the need of any hard collateral or business financials. Our factoring product is designed in a way that lets SMEs immediately release their working capital from foreign trade transactions and utilise the funds at any stage of the business lifecycle, to pay for inventory, raw materials, employees, or any other short-term needs. This is a non-recourse factoring solution which means that if the buyer defaults on any invoice financed by us, the obligation to pay back the amount does not fall on the exporter as all the financed invoices are insured.

Why Invoice Factoring?

Are you an SME exporter? Have you extended a credit period to your foreign buyers? Do you often wait for buyer payments? Is your bank’s restricted credit facility limiting the growth of your export business? Do you want a financing solution for your working capital needs that is fast, paperless, reliable, transparent and collateral-free? If you have answered yes to any of the above questions, you need invoice factoring to get that competitive advantage. Here’s how our non-recourse invoice factoring product can help you grow your export business.

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Offer flexible payment terms to your foreign buyers
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Get a line of export credit over and above your bank’s credit facility
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Maintain a positive cash-flow
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Easier and faster access to working capital
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Never wait for buyer payments
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Reduce your dependence on bank loans

How Invoice Factoring 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
ET Tech
YourStory
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Fortune India
VC Circle
Bloomberg Quint
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Financial Express

Experience the power of export financing with Drip capital

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

Factoring is the purchase of accounts receivables as opposed to a bank loan that creates liability on the balance sheet.
How is invoice factoring different than a bank loan?
Factoring is the purchase of accounts receivables as opposed to a bank loan that creates liability on the balance sheet.

Invoice Factoring 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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