# A Complete Guide to Export Bill Factoring Services in India ### Working Capital Finance with Export Factoring to grow your Business #### What is Export Factoring? Export Factoring is one of the fastest and easiest ways to secure working capital if you want to grow your exports business without going through the hassle of securing a loan from a bank. An export factoring solution is generally provided by factoring companies that specialize in foreign trade. Certain other features like foreign currency disbursements and verifying buyers in specific geographies are also features that are unique to an export factoring. At its core, export factoring solutions are foreign bills payable that are sold to an export factor, who makes a partial payment for purchasing the export invoice and makes the remaining payment at the due date, after deducting the necessary fees. Exporters can then utilise these funds at any stage of the business lifecycle, to pay for inventory, raw materials, employees, or any other short-term needs. #### Why Opt for Export Factoring? Exporting goods from India can get fairly complicated. The issue is further compounded when exporters are dealing with unknown or unverified importers in a foreign country. Growing export businesses can offload this risk of non-payment from an unknown buyer to an export factoring firm by simply selling its export trade receivables, receiving payment in the short-term and using the cash to cater to another export order. #### How to Choose an Export Factoring Company? Before working with an export factoring company, one should make sure that the company has the requisite skills and expertise to understand and work on export trade transactions. This means the company should; 1. Have the capabilities to work with foreign buyers without any issues concerning foreign bills collections 2. Be capable of making payments in popularly traded foreign currencies 3. Be able to advise on key markets to consider for different industries Extend flexible payment terms to your foreign buyers Foreign currency financing Get a line of export credit over and above your bank’s credit facility Reduce your dependence on bank loans Maintain positive cash-flow Never say no to any export order due to lack of capital ### How Does Export Factoring Work? Submit invoice digitally on Drip's Portal Get 80% invoice value in advance Buyers pay 100% to Drip Capital We pay you remaining 20% less our charges ### 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 $3 Million Get post-shipment export credit line up to $3 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 Receive cash advance against your trade receivables ## Quick Facts About Drip Capital $8 Billion+ Trade Financed 11000+ Buyers & Suppliers 100+ Countries 100,000 Cross-Border Transactions ## Growth Stories Learn about how we’ve 10xed exporters ##### Pari Agro Exports Exporter of Basmati Rice from Punjab 4x increase in Turnover USD millions 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 ##### Tatva Enterprise LLP Exporter of Plastic products from Maharashtra 7x Increase in Turnover USD millions 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 3x increase in Turnover USD millions 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 50% wallet share USD millions 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. Thota Rama Krishna Promoter, Satya Impex 50% wallet share USD millions ## Frequently Asked Questions #### What is Export Factoring? Export Factoring is one of the fastest and easiest ways to secure working capital if you want to grow your exports business without going through the hassle of securing a loan from a bank. Drip Capital provides up to 80% of your export invoice value upfront on the day of your shipment, while the remaining 20% minus the factoring charges is paid once the buyer makes full payment to Drip Capital when the credit period is over. This not only improves your cash flow but also eliminates the hassle of payment collection and provides protection against buyer defaults.