Trade Finance : What It Means & Its Advantages

Convert your Invoices into Cash with Collateral-Free Trade Finance

What is Trade Finance?

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. /n 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.

Why Trade Finance?

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.



Mitigates risk of non-payment


Increased capacity to extend longer credit period to your buyers


Get your working capital financed without any collateral


Focus on getting more export orders with better cash flow


Reduced dependence on banks to secure additional funds


Spend less time collecting payment from your buyers

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

Receive cash advance against your trade receivables

Apply Now

Quick facts on Drip Capital

Trusted by more than 1500 Exporters and Importers Globally

$500 M

of Trade Financed







Our Partners


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.

Hiral Parikshit Pawar
Promoter, Tatva Enterprise LLP
7x Increase in Turnover
USD millions
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.

Abdul Salam
Promoter, Al Sami Agro Products
3x increase in Turnover
USD millions
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.

Thota Rama Krishna
Promoter, Satya Impex
75% wallet share
USD millions
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.

Varun Sachdeva
Promoter, Pari Agro Exports
4x increase in Turnover
USD millions

In the news

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Experience the power of export financing with Drip capital


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

What is the application process for Trade Finance Facility with Drip Capital for exporters? How long does it take?
How much will you finance per Invoice?
What information do you require from us to process our application?
I require pre-shipment trade finance to help with purchase of goods, can you help with arranging for the same?
Looking for more questions?View All

Trade Finance Resources

Export Finance - Why is it required and Types
Export Finance - Why is it required and Types

August 28,2019

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Invoice Factoring: Easy Access to Working Capital for your Business
Invoice Factoring: Easy Access to Working Capital for your Business

October 31,2018

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Government Loan Schemes to Finance your MSME Business
Government Loan Schemes to Finance your MSME Business

January 22,2019

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