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.
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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