Post Shipment Finance: What It Means and Its Advantages

Collateral-Free Post Shipment Finance to boost your Exports

What is Post Shipment Finance?

Post Shipment finance is a short-term finance solution that takes care of cash or liquidity requirements of export business for the time lag between when an exporter ships the goods, and till the time he receives payment from his buyer. Drip Capital provides Post Shipment Finance in the form of Invoice Factoring, wherein an exporter can submit his invoice on our online portal and 80% of the invoice value will be funded within 24 hours provided that the goods have been shipped. After the invoice is funded, the exporter doesn’t have to worry about collection and the funds which he receives can be used to pay off suppliers or for new business opportunities. Once export proceeds are received from the buyer remaining 20% of the invoice value will be disbursed after debiting factoring and interest charges.

Why Post Shipment Finance?

Post Shipment Finance can help an export business to effectively manage their working capital, especially if it sells goods on credit wherein the funds remain tied up in invoices till the time goods are shipped and payment is received from the buyer. Since it takes time to acquire credit line from banks for a short-term requirement of funds without hard collateral, post-shipment finance from Drip Capital will give you a fast and collateral-free solution to maintain liquidity for your growing business.

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Flexibility in extending credit period to your foreign buyers
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Reduced dependence on banks for working capital
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Enables you to focus on other growth areas
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Never say no to any export order
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No need to provide collateral to acquire funds
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Efficient and hassle-free process which gets you your funds in time

How Post Shipment Finance Works?

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Submit invoice digitally on Drip's Portal
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Get 80% invoice value in advance
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Buyers pays 100% to Drip capital
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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
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
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Receive cash advance against your trade receivables

Quick facts on Drip Capital

$500 M

of Trade Financed

400+

Exporters

70+

Cities

60+

Countries

Our Partners

eepc
chemexcil
fieo
svb
wells-fargo

Growth Stories

Learn about how we’ve 10xed exporters

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.

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.

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.

50% wallet share USD millions
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.

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

It takes just 15 minutes to complete our application form. This will allow us to set up your account. Subsequently, you need to provide us with a list of your buyers. We will be in a position to revert to you with our credit decision within five working days.
What is the application process for Post Shipment Finance Facility with Drip Capital for exporters? How long does it take?
It takes just 15 minutes to complete our application form. This will allow us to set up your account. Subsequently, you need to provide us with a list of your buyers. We will be in a position to revert to you with our credit decision within five working days.

Post Shipment Finance Resources

Export Finance - Why is it required and Types
Export Finance - Why is it required and Types
Learn More
Invoice Factoring: Easy Access to Working Capital for your Business
Invoice Factoring: Easy Access to Working Capital for your Business
Learn More
Government Loan Schemes to Finance your MSME Business
Government Loan Schemes to Finance your MSME Business
Learn More

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