Export Factoring For Chemical Industries
The Indian chemical and petrochemical industry is among the largest in the world valued at %178 billion making it the 6th largest producer of chemicals in the world. The nation is the 14th highest exporter for chemical and petrochemical products with a contribution of 2.5% of all the global chemical trade. Read more
As of FY 21-22 Indian chemical traders have exported products worth approximately $24 billion, with an year on year growth of 38.67%, to 175 countries including China, USA and Brazil.
The Chemical and Petrochemical industry is expected to see a tremendous acceleration in growth. Under the PICPR Policy 2020-35, the Indian Government aims to inject investments worth $140 billion by 2025 and another $213 billion by 2030.
Therefore it is safe to assume that exporters in the chemical and petrochemical industry can hope to see numerous growth and expansion opportunities in the near future. However, without a healthy working capital, exporters can miss out on these opportunities. This is where Export Factoring can be the extra-edge that Chemical exporters will need.
What is Export Factoring
Export Factoring is a global trade financing option where a financier buys and manages and exporter’s receivables against goods provided by them to international buyers. This type of financing enables the Chemicals exporter to generate immediate working capital and therefore invest further in new growth opportunities.
It is best suited for:
- Exporters who are established in the industry
- Exporters wanting to provide more flexible open account terms to their buyers
- Exporters looking to mitigate the risk of payment defaults
- Exporters who need immediate liquidity for rapid growth.
How Export Factoring Can Help Chemicals Exporters
There are many long-term and short-term benefits of Export Factoring as an trade export finance for Chemicals Traders -
The financier will purchase the outstanding invoices, saving the exporter from having to wait the customary 60 to 90 days for liquidity. and receive money into their operating capital right away instead.
Cash Flow Cycle
Since the exporter receives payment for their bills immediately, they are able to keep a stable cash flow and make investments for growth.
Responsibility Of Collections
When the financier purchases the unpaid invoices from the exporter, they automatically take on responsibility for recovering the receivables. As a result, the exporter is free to focus on the objectives of his or her business.
The majority of export factoring options finance up to 80–90% of the outstanding receivable instantly to the exporter, thus lowering any potential payment default risk.
The export of chemicals is a highly competitive market. Therefore, it stands to reason that companies with more liquidity to take advantage of fresh opportunities will dominate the market.
Why Choose KredX GTX For Your Chemicals Export Business?
KredX GTX (KredX’s Global Trade Finance Exchange), is an innovative and fully digital platform that enables Chemicals Exporters to find post-shipment financing at the lowest rates.
Transparent Bidding System:
Discover multiple flexible trade financing options with competitive rates.
Performance Based Financing:
Find non-recourse collateral-free post shipment financing.
Large Pool of Financiers:
Get access to a selection of domestic and international financiers.