Receivables Factoring: Faster Way to Growth
Collateral-Free Working Capital Finance with Receivables Factoring
What is Receivables Factoring?
Account receivables factoring, or simply receivables factoring, is a type of financing that allows businesses to turn their outstanding invoices into working capital that they can use for their business operations. Drip Capital makes this possible by financing upto 80% of the invoice value on the day of your export shipment, while the remaining 20% minus the factoring charges is paid once the buyer makes full payment to Drip Capital. This ensures a steady flow of working capital, essential at every stage of the business, from procurement of raw materials to production and shipment of the finished products to an importer overseas. Unlike a bank loan, Drip Capital’s receivables factoring solution is collateral-free and helps exporters get finance in less than 24 hours without having to wait for weeks or months to get paid for their shipment.
Why Receivables Factoring?
Have you extended a credit period to your foreign buyers? Do you often wait for payments? Is your bank’s restricted credit facility limiting the growth of your export business? Do you want a financial solution that is fast, paperless, reliable, transparent and collateral-free? If you have answered yes to any of the above questions, receivables factoring is right for your business. Here’s how our solution can help you grow your business.
RECEIVABLES FACTORING ADVANTAGES
Extend flexible payment terms to your foreign buyers
Credit protection against buyer defaults
Get a line of export credit over and above your bank’s credit facility
Reduce your dependence on bank loans
Maintain positive cash-flow
Pay your suppliers on time
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.
