Reply To: For those involved in financial services, particularly trade finance, I’m curious about Drip Capital. How does this company manage to provide working capital loans to exporters despite not having a license to operate as an NBFC or a factor?

[Francis Amal Raj]

Drip Capital is a factoring company based in the United States and registered with Factors Chain International. The Reserve Bank of India (RBI) liberalized policies over 15 years ago, allowing Indian exporters to directly seek financing for their export receivables from overseas factoring agencies. The only condition is that the overseas factoring agency must remit the factoring proceeds into the exporter’s bank account held with an Authorized Dealer (AD) Bank in India. You can refer to RBI’s regulations under their Master Circular on Export Credit finance.