Export Factoring For Pharma Industries

India is popularly known as ‘The Pharmacy of the World’ as it accounts for 20% of the global pharmaceutical supplies and contributes to 60% of all vaccines traded. In FY 2021-22, the pharmaceutical exporters had traded pharma products valued at $42 billion with a growth rate of 18% from the year before. Read more

In FY 2019-20, the Indian pharmaceutical export sector saw an annual turnover of approximately $36.7 billion despite the supply chain disruption caused by the Coronavirus.

The Government of India aims to further bolster the pharmaceutical industry with a $64.5 million investment to strengthen the existing infrastructure under the Strengthening of Pharmaceuticals Industry initiative (SPI). With these dedicated government initiatives exporters in the sector will get the opportunity to expand their businesses, given they have the working capital to leverage. This is where export factoring can provide exporters with immediate liquidity to invest towards growth.

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 pharmaceutical 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 Pharmaceutical Exporters

There are many long-term and short-term benefits of Export Factoring as an trade export finance for Pharmaceutical Traders -

  • Immediate Liquidity

    As the financier buys the pending invoice receivables the exporter can avoid waiting the usual 60-90 day period to get liquidity. And, instead receive funds immediately into their working capital.

  • Healthier Cash Flow Cycle

    Since the exporter is receiving funds immediately on their invoices they can maintain a healthy cash flow and invest towards expansion.

  • Collections

    As the financier purchases the pending invoices from the exporter they inherently take the responsibility of collecting the receivables. This leaves the exporter to focus on their business objectives.

  • Decreased Risk

    Most Export Factoring options finance up to 80-90% of the pending receivable immediately to the exporter, drastically reducing the risk of payment defaults they might have faced.

  • Competitive Advantage

    The pharmaceutical Export industry can be quite competitive. So, naturally the businesses that have higher liquidity to leverage new opportunities will have the upper hand in the market.

Why Choose KredX GTX For Your Pharmaceutical 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.