India's Largest Post-shipment Financing Platform

Industries
We Serve

Whatever be your industry, we have you financially covered

Current Scenario

With the emergence of startups, coworking spaces are high on demand, owing to the culture and facilities provided.

Challenge

Being a high-impact industry, manufacturing businesses often have quick fund requirements to take on new orders, provide services, or fulfil existing orders.

Solution

KredX's invoice discounting platform allows manufacturing businesses to raise quick working capital against their unpaid invoices.

Impact

Business gets benefited with quick access to funds, thereby enabling growth.

Current Scenario

Logistics industry plays a key role in the financial growth of India and is forecasted to grow at a CAGR of 10.5% between 2019-2025. Logistics is not just limited to manufacturing set up; it plays a significant part across industries and sectors like retail, financial services, etc.

Challenge

Being a high-growth sector, managing day-to-day operations and clearing unpaid invoices can be challenging for logistics businesses, resulting in the need for quick access to working capital.

Solution

KredX's invoice discounting platform enables logistics businesses by unlocking money tied up in unpaid invoices

Impact

Business gets benefited with quick access to working capital, thereby enabling business growth and efficient supply chain management.

Current Scenario

India has witnessed a massive growth in the market for the retail and e-commerce sector and is predicted to grow from $125 billion as of April 2017 to $250 billion by 2020.

Challenge

As an industry with high growth potential, e-commerce businesses often find it challenging to manage the daily operations and clear unpaid invoices, resulting in the need for working capital.

Solution

KredX's invoice discounting platform facilitates e-commerce businesses by providing quick working capital by utilising their unpaid invoices

Impact

Business gets quick access to working capital, thereby allowing growth, expansion, and timely fulfilment of orders and services.

Current Scenario

The contribution of the fast-moving consumer goods (FMCG) sector is quite significant in the Indian economy, estimating for 43% of the overall market. The shift in consumer demand has contributed to the massive expansion of the industry.

Challenge

The FMCG industry involves substantial additional costs like packaging, transportation, storage, etc., leading to a quick need for additional working capital.

Solution

KredX's invoice discounting platform helps FMCG businesses by enabling them to use their unpaid invoices to get quick working capital.

Impact

Business gains from quick access to funds, thereby fuelling business growth and optimising the supply chain.

Current Scenario

The Indian chemical industry is poised to benefit from the near-term opportunities and has witnessed a growth of 13-14% over the last five years.

Challenge

As a high-growth sector, businesses operating in the chemical industry often require financing for constant production lines and meet the order requirement.

Solution

KredX's invoice discounting platform helps Chemical businesses by providing timely access to working capital by using their unpaid invoices as a pseudo-collateral.

Impact

Business profits from immediate access to working capital, thereby enabling business growth and expansion.

Current Scenario

The pharmaceutical sector is one of the flourishing industries in India, growing at a compounded annual growth rate (CAGR) of more than 15% in the last 5 years.

Challenge

Being a growing industry, businesses often require financing for consistent production lines to meet the continuous demand of the pharma industry.

Solution

KredX's invoice discounting platform helps Pharma businesses utilise their unpaid invoices to get immediate access to working capital.

Impact

Businesses get timely access to funds, thereby aiding in maintaining daily operations and growth.

Current Scenario

The essential goods industry is positioned to accelerate growth in the upcoming quarters due to the pandemic outbreak and the consequent changing consumer behaviour.

Challenge

As a high-growth potential sector, businesses often find it challenging to manage transportation, supply chain, staffing and operational costs.

Solution

KredX's invoice discounting platform assists businesses operating in the essential goods industry to utilise their unpaid invoices to get instant access to working capital.

Impact

Quick access to working capital helps in business growth and expansion.

Current Scenario

The printing and packaging industry in India was valued at $50.5 billion in 2019 and is predicted to reach $204.81 billion by 2025, recording a CAGR of 26.7% during 2020-2025.

Challenge

Vendors require financing for consistent production lines and procure new machinery with advanced technology to meet the continuous demand of the printing & packaging industry.

Solution

KredX's invoice discounting platform helps businesses operating in the printing and packaging industry to gain access to working capital by using their unpaid invoices as a pseudo-collateral.

Impact

Quick access to working capital helps in business growth and expansion.

Current Scenario

From concrete godowns to the modern, technologically advanced stockroom equipped with real-time tracking methodology, the warehousing industry has come a long way. Today, enterprises need continuous storage of inventory as the demand is too high, and hence, they rely on warehousing.

Challenge

Being a high-growth industry, warehousing businesses often require timely access to working capital to maintain their business operations.

Solution

KredX's invoice discounting platform enables warehousing businesses to get quick access to working capital by using their unpaid invoices.

Impact

Business gets access to working capital, thereby enabling expansion and growth.

FAQs

Kredx Global Trade facilitates global supply chain financing to Indian Exporters for merchandise exports.

KredX facilitates post shipement export financing only for cross border merchandise exports. We do not cover pre shipment financing or deemed exports.

Kredx does not ask for collateral, neither insists on opening a current account and the facility is excluded from the drawing power i.e your regular banking facilities remain unaffected.

Kredx offer's only post shipment finance to Indian registered exporters for the merchandise exports originating from India. We do not provide pre shipment finance / import finance / LC backed financing.

Kredxs's offers without recourse receivable financing products. The facility is without collateral and is backed by credit insurance covering buyer bankruptcy only however for any other reason such as commercial dispute the recourse is to the exporter and Kredx will have the right to recover the financed amount alongwith the charges to the exporter.

No, Kredx does not demand any collateral for the facilities extended to the exporter but would require the invoices which are factored to be assisgned to us.

We require a minimum of 1 year of regular trading history with the buyers.

No, all transactions that Kredx extends financing needs to be covered by the insurance company that Kredx has tied up with.

At this point of time Kredx does not have any offering for any type of pre shipment finance.

Post shipment financing benefits those exporters who terms of payment are on credit. Typically a buyer will ask his supplier for a credit period of 30-60-90 days. With post shipment finance you get immediate acces to capital and you do not have to wait that long to get paid. You can then use these funds to pay your suppliers, accept more orders from your buyers or invest it in the maintenance or upgrade of your factory. It's of significant benefit to exporters having a long credit cycle.

In order to avail of the post shipment receivable financing, one needs to have a minimum of 2 years of performance history as an exporter.

Kredx extends export finance for goods that are on open account (OA),and Documents against acceptance (D/A)

Currently Kredx offers only post shipment finance.

"Step 1 : Submit Invoice / Purchase Order (PO) and Bill of Lading (BL) along with the buyer details to Kredx.

Step 2 : KredX does the credit assessments and advises buyer wise limits.

Step 3. Kredx pays you upfront upto 80% to 85% of the Invoice value within 24-48 hours

Step 4. Your customer pays Kredx directly on the due date entire invoice value (100%) and Kredx will liquidate the outstanding deal amount and pay balance 15% to 20% margin to you after deducting interest and commission charges. acutal liquidation."

The exporter should have a track record for 24 months of exports with a min annual turnover of USD 3 M.

The cost varies and is based on the creditworthiness of your overseas buyer. Kredx can provide you with a proposal upon receiving complete details of your transaction.

It's on full invoice amount.

Interest is charged on the advanced amount only

Facility fees is charged on the full amount.

90%

Such a structure is not allowed.

Yes, if your buyer pays partly in advance and agrees to pay the remaining sum in 45/60 days from the bill of lading (BL) date, Kredx can extend finance on that invoice.

Kredx can provide a maximum finance upto 85% of the net invoice value, subject to internal credit approval. In certain instances, the approved amount may be lower than 85%.

On submission of proof of shipment Kredx will transfer 85% of invoice amount to your bank account, this is a payment made by Kredx for purchasing your receivables (from buyer). This finance arrangement is that of 'Receivables Purchasing'. We are essentially purchasing the rights to collect payment for your invoice in exchange for an advance payment to you. Receivables in this case are the payments for goods that you will receive on due date of the credit period (from your buyer) and thus your buyer has to make the full and final payment to us on due date. After receiving the payment Kredx will deduct our charges and then transfer the balance of the amount back to your account.

Option 1 – In an open account operation, where you send documents directly to your buyer, you can continue with the same procedure. Please ensure that you also send Kredx a scanned copy of all the documents.

Option 2 – If you follow the practice of sending your documents through your bank to the buyer, you will need to change the procedure. It will be necessary for you to send the original documents to Kredx and Kredx will arrange to send the documents to your buyer.

Option 3 – For those exporters who follow the practice of sending documents through their bank to the buyer’s bank, it will be necessary to follow a revised procedure wherein the documents will need to be routed through the Bank designated by KredX

If all the requisite data is submitted from your end, the turn around time for granting this facility is as fast as 7 days from the date of application (from the date Kredx receives all the requisite data and information required for internal evaluation).

Yes, as long as the email is coming from the buyer.

Mandatory transaction documents required to be submitted are:-

a) Purchase Order, b) Commercial Invoice, c) Bill of Lading, d) Purchase Request Letter, e) Bill of Exchange (if applicable), f) BL Delivery Letter (if applicable), e) Bank Covering Letter (if applicable)

2) Invoice format instructions, the invoice must mention the assignment to Kredx as well as our bank account details as per the text provided by KredX

BL must mention your invoice number. If it does not, we would need a copy of the shipping bill mentioning the invoice number

Yes.

In the event of buyer bankruptcy, Kredx will file a claim with the insurance company. Upon receiving the payout from insurance company, Kredx will recover it's dues and pass on the remaining surplus funds (if any) to exporter.

Exporter would send buyer notification letter on it's letter head (format will be shared by Kredx) and then Exporter would give Kredx the scanned image of acknowledged copy signed by buyer. Kredx on it's part will contact buyer and get a confirmation on buyer acknowledging the signing of letter and a confirmation that all proceeds would be remitted to Kredx's account irrespective of invoice's purchased or not by Kredx.

No, we currently do not function with such an arrangement

No, we would not be funding in such an instance.

No, related party sales are not financed by us.

We require atleast 12 months of consistent trading history with the buyer.

No, we do not finance consignment sales.

No, we do not finance such transaction.

This document is in the nature of a Deed of Assignment that specifies the commercial terms on which the Exporter is assigning the receivables to Kredx i.e. purchased from the Exporter. All receivables assigned under this agreement are sold exclusively to Kredx and all the corresponding rights associated with these receivables i.e. right to legally proceed against the Buyer, ability to onward assign the receivables to the Credit Insurance company are covered under this agreement.

Kredx provide's postshipment export finance to exporters located anywhere in India.

A basic set of information is required from your side and that would include information about your company, ownership pattern and your financial statements. Additionally, details of the proposed transaction and buyer. Upon receipt of the completed Kredx Application Form, Kredx will process your application.

We would revert within 5 working days and advise you if insurance cover is availbale on the buyer or not.

Kredx’s offering on the postshipment export finance is a non-recourse facility. However in the case of a commercial dispute, it is with full recourse to the exporter.

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