An exporter who utilises Drip Capital’s finance facility will need to bear three types of charges:
- Processing fee – this is a one-time fee and it ranges from 0.4% to 1% of the total credit facility that is approved.
- Factoring fee – this is charged for each invoice. The amount that is levied ranges from a low of 0.4% of net invoice value to 1% of net invoice value.
- Interest – this ranges from a low of 4.5% per year to 9% per year. It is calculated on the actual number of days for which the finance facility is utilized.
Fees and charges are not collected upfront. They are deducted from the payment that is made to the exporter when the amount is received from the buyer. The processing fee is deducted at the time of the first such payment.