In cross-border trade transactions, it is a common occurrence that the foreign buyer demands certain credit period, while it is in the best interest of the exporter that the buyer makes the payment upfront. There is also a general lack of faith in this form of trade as it involves two entities from different geographies. Trade Finance takes care of both these issues, it assists the exporters with financing so that they can agree to the foreign buyer’s credit terms, and it also mitigates the risk involved as both buyer and seller have some certainty about their transaction. Drip Capital is a Trade Finance Company providing Post Shipment Trade Finance wherein once an exporter has shipped his goods, he can submit his invoice to Drip and 80% of the invoice value will be funded within 24 hours. The remaining 20% will be funded once Drip receives the export proceeds from the Foreign Buyer after debiting processing and interest charges. Drip Capital provides unsecured trade finance which does not require any hard collateral and an online portal where exporters can upload their invoices and get their invoices financed quickly, without any hassle of paperwork.
If as an exporter you are facing a cash crunch in your business which in turn does not allow you to process new export orders, you are unable to secure additional funds from your bank because they are demanding collateral or organized financial statements, your buyers can’t be persuaded to pay in advance and you have to offer flexible payment terms to keep them convinced, then your business will benefit from Drip Capital's Trade Finance.
Buyers & Suppliers
Learn about how we’ve 10xed exporters
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.
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.
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 50% of those export invoices were financed by Drip.
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.