looking for quick, hassle-free
BUSINESS LOAN?Get hassle-free business loan within 48 hrs now
The Growing Requirement of Export Factoring for MSMEs
Micro, Small, and Medium Enterprises (MSMEs) are important for global trade, and they contribute notably to the Indian export basket. These firms usually experience financial distress, like delayed payment, lack of working capital, and credit risk, when it comes to foreign buyers. Industry reports suggest that MSMEs are responsible for close to 45% of Indian exports, but most of them are hampered by working capital management because of long payment cycles.
To counter these challenges, export factoring offers an untied financing facility that guarantees timely cash flow, and companies can enhance their global reach. The facility enables exporters to receive instant cash against outstanding invoices, minimizing reliance on conventional bank loans and improving financial security.
Key Features
Collateral-Free Funding
Secure capital without risking personal or business assets
Seamless Digital Journey
Paperless applications, instant approvals and funds transferred with just a few clicks
Tailored Repayment Solutions
Align repayments with your cash flow for stress-free financial management
Lightning-Fast Approval
Receive a lending decision within 48 hours, accelerating access to critical funds
Eligibility Criteria
Eligible Business Entities and Sectors
Self-employed professionals, sole proprietorships, private limited companies, partnership firms and Limited Liability Partnership firms engaged in manufacturing, trading, or service-oriented industries are eligible to apply.
Annual Turnover Requirement
The business must report a minimum annual turnover of ₹50 lakhs (INR 50,00,000) as per the latest financial records.
Minimum Business Operational Tenure
Applicants must have a minimum operational history of one (1) year in their current business at the time of application.
Applicant Age Parameters
The applicant must be at least 21 years old when submitting the loan application and must not exceed 65 years of age by the loan’s maturity date.
Identity & Business Address Verification Documents
PAN Card
Voter's ID Card
GST Certificate
Driving License
Passport
Ownership Proof
Aadhar Card
Bank Statement for 12 months
Udhyam Registration Certificate
Rate of Interest
Starting at just 1.5% Per Month
Stamp Duty
As per applicable laws of the state
What are MSME Export Factoring Services?
Export Factoring Services are a funding agreement whereby the exporter sells its accounts receivable (bills) to a factoring company for cash in advance. In contrast to the use of bank loans, which are collateral-based and require so much paperwork, export factoring offers a quick and less burdensome option for MSMEs to maintain their cash flow.
How does MSME Export Factoring Work?
- Invoice Issuance: MSME exports products and sends an invoice to the foreign buyer.
- Invoice Sale: Exporter sells an invoice to an export factoring company.
- Immediate Payment: The factoring company pays 80-90% of the invoice amount to the MSME.
- Buyer Payment: Foreign buyer settles with the exporter within the agreed credit period (30-90 days).
- Final Settlement: The Factoring company collects the fee and pays the balance to the exporter after receiving payment from the buyer.
Key Benefits of MSME Export Invoice Financing
- Easy Access to Working Capital: MSMEs get immediate cash, without waiting for extended payment cycles.
- No Collateral Needed: Export factoring does not involve providing collateral assets, unlike traditional credit facilities.
- Reduced Credit Risk: Factoring companies tend to offer credit insurance against default by the buyer.
- Improved Cash Flow Management: Businesses can invest more in operations, production, and growth without worrying about liquidity.
- Streamlined International Transactions: Export factoring streamlines trade finance, except for cumbersome banking procedures.
Comparing MSME Export Factoring Services vs. Traditional Trade Finance
| Feature | Export Factoring for MSMEs | Traditional Trade Finance |
| Funding Speed | Immediate (within 48 hours) | Lengthy process (weeks or months) |
| Collateral Requirement | No collateral needed | Often requires assets as security |
| Credit Risk | Offers credit protection | Business bears full risk |
| Eligibility Criteria | Based on invoice quality & buyer creditworthiness | Based on the business's financial history |
| Best For | MSME exporters with pending invoices | Large corporations with extensive trade history |
MSME Credit for International Trade: Filling Fiscal Pockets
MSMEs require MSME Credit for International Trade to remain competitive on the world stage. This offers flexible financing for:
- Pre-shipment and post-shipment loans for production and shipping costs.
- Trade credit insurance to cover non-payment risk by buyers overseas.
- Short-term finance to support the procurement of raw materials and inventory management.
- Tailor-made repayment terms aligning with international payment cycles.
Why MSME Trade Finance for Exporters Matters?
MSME Trade Finance for Exporters enables firms to reduce their financial risks and ensure smooth trade transactions. The most essential trade finance products include:
- Letter of Credit (LC): A payment guarantee by a bank, ensuring exporters are paid on completion of shipment terms.
- Export Credit Insurance: Insures MSMEs against foreign buyers' non-payment.
- Supply Chain Finance: Enables suppliers to be paid in advance on confirmed export orders.
- Foreign Currency Loans: Help companies hedge against exchange rate risks.
How Credlix Empowers Smart Export Factoring for MSMEs?
Here at Credlix, we grasp the special credit needs of MSME exporters. Our Export Invoice Finance and Export Factoring services for MSMEs are programmed to give your business instant access to working capital, so it can grow internationally without the budgetary burden. With a complete 100% online procedure, instant approval, and low cost of interest rates, we support MSMEs to concentrate on growth while letting us handle finances.
Unleash New Opportunities for Growth for Your Export Venture!
- Ready and Prompt Access to Capital – MSMEs have to wait for extended durations to get paid by foreign buyers, which disrupts their cash flow and slows down the business. With Credlix, companies are provided with funds within a time frame of just 48 hours, which guarantees uninterrupted growth and stability.
- Zero Collateral Required – Unlike conventional bank loans, which require enormous assets as security, Credlix finance is backed by invoices. This means that MSMEs are able to raise working capital without jeopardizing their assets.
- Less Credit Risks – Export business has some inherent risks like default from buyers and late payment. Credlix provides financial guarantees so that the company receives the payments even in volatile market situations.
- Customized Solutions – Each business has specific financial requirements. Credlix offers customized export factoring solutions that address the specific needs of MSMEs with flexible repayment schedules and affordable costs.
- International Trade Support – International trade entry demands a simple financial model. Credlix facilitates international trade by offering export factoring solutions that enable MSMEs to address issues in international trade easily.
If your enterprise needs MSME Credit for International Trade or MSME Trade Finance for Exporters, Credlix is the perfect source of financial support to enable you to fund cash flow, mitigate risks, and grow internationally.
Customer Feedback and Recommendations
Real stories from real clients showcasing their journey with us
Fastest loan approval I’ve ever seen! Helped me stock up on inventory right before the peak season.
Founder – Wholesale Electronics Trader – Delhi
Credlix’s Customer service was top-notch! They explained everything clearly and got me the best deal possible.
Proprietor – Textile Manufacturer – Surat
This loan helped me fulfill bulk export orders on time. Flexible terms made repayment easy & there were No hidden charges, smooth process, and quick disbursal.
Founder – Leather Goods Manufacturer – Kanpur
Expanding my supply network seemed tough, but Credlix's hassle-free loan process made it possible!
Director – FMCG Distributor – Kolkata