Blog - Trade finance India

Invoice discounting is a type of financing that allows businesses to raise cash by selling their unpaid invoices to a finance company or a lender. Under this arrangement, the finance company advances a certain percentage of the value of the invoices to the business upfront, typically between 70% to 90%. The remaining amount, less the...

India offers many opportunities for exporters due to its large and growing market, low labor costs, and supportive government policies. Some of the key sectors with potential for exports from India include: Manufacturing: India has a large and diversified manufacturing sector, which includes everything from textiles and apparel to engineering goods, electronics, and pharmaceuticals. The...

India has experienced significant growth in exports over the past few decades. The country’s export sector has grown at an impressive rate, with exports increasing from US$18 billion in 1991 to over US$443 billion in 2022. Some of the key factors driving export growth in India include: Economic liberalization: In the early 1990s, India undertook...

Export factoring is a financial tool used by businesses engaged in international trade to obtain cash quickly without the need for collateral. With export factoring, businesses can sell their invoices or accounts receivable to a factoring company, which will then provide them with cash upfront, typically within 24-48 hours. Export factoring is particularly useful for...

Bill discounting is a financial strategy that allows businesses to access cash quickly by selling their unpaid bills or invoices to a financial institution at a discounted rate. This can be a great option for businesses that need to maintain cash flow while waiting for their customers to pay their invoices. With bill discounting, businesses...

Export factoring has emerged as a boon for exporters from India in recent years. Factoring is a financial transaction in which a company sells its accounts receivable, or invoices, to a third party, known as a factor, at a discount. Export factoring is a specialized form of factoring that is specifically designed for export-oriented businesses....

Export factoring is a financial tool that enables exporters to get paid quickly for their international sales invoices. It is a type of accounts receivable financing that allows businesses to improve their cash flow by selling their accounts receivable to a factoring company, who then collects payment directly from the buyers. With export factoring, businesses...

Supply chain finance, also known as supplier finance or reverse factoring, is a financial strategy that aims to improve the efficiency and liquidity of a supply chain. This strategy allows suppliers to receive early payments for their outstanding invoices, while buyers can extend their payment terms without hurting their credit ratings. Supply chain finance works...