How KapitalKart will help exporters and importers?
KapitalKart is an aggregator platform. We are partnering with leading Banks, NBFCs, Insurance, Supply Chain and Factoring companies across the world. Our aim is to become an omnichannel platform for exporters and importers. We are starting with our financial services which will enable exporters and imports to reach to multiple financers by just submitting there requirement on our platform. In phase 1, We intend to give them a dashboard which going forward take care of all the financing needs of exporter/importer community and later on we will help them from supply chain to insurance to financing to claims.
How KapitalKart does export bill discounting?
As we Know, Export bill discounting refers to a financing arrangement in which an exporter receives immediate cash payment from a bank or a financial institution for the export receivables (i.e., bills of exchange) that are due at a future date. In other words, the exporter sells its export receivables to the bank or financial institution at a discount and receives the cash immediately. The bank or financial institution assumes the credit risk of the exporter’s customer and collects the payment on the due date. KapitalKart has tied up with different banks, NBFCs and Factoring companies to provide best in class services to their clients.
Is our financing of export invoices non-recourse or recourse?
KapitalKart provides both recourse as well as non- recourse financing options. The decision to provide recourse or non-recourse financing depends on several factors, including the creditworthiness of the borrower, the value and liquidity of the collateral, and the lender’s risk appetite. Lenders typically provide non-recourse financing when the collateral pledged by the borrower is of high quality and can be easily liquidated in case of default. Non-recourse financing is also common in project financing, where the cash flows generated by the project are used to repay the debt, and the lender’s recovery is tied to the success of the project. On the other hand, recourse financing is more common when the creditworthiness of the borrower is in question, and the lender wants to have the option of pursuing the borrower in case of default. Recourse financing also allows the lender to offer lower interest rates, as the risk of default is shared between the borrower and the lender.
How much time it will take to get funding?
Once you will submit your request, One of our executive will call you to get a detailed requirement. Post which depending upon requirement we will pass it to multiple matching partners. In case of non insurance funding we will proceed ahead with document collection. For insurance backed we will wait for limits on buyer. Once limits in place we can fund within 1-2weeks.
What all buyer and seller country KapitalKart supports?
We support all geographies except sanction countries. But our primary currencies are USD or Euro.
How can I refer my cases as Broker at Kapitalkart?
You can register yourself as broker at our platform. Alternatively you can also write an email to hello@kapitalkart.com
How KapitalKart does import financing?
There are two ways to do import financing. one is through reverse factoring and second is through importer or buyer credit. Depending upon the cases we can use one them to fund importers.
Do you provide pre shipment or post shipment financing?
Our Platform facilitates both pre shipment as well as post shipment financing. But our partner financial institutions consider several factors when choosing between pre-shipment and post-shipment financing for an exporter, including: 1. Nature of the transaction: The type of transaction, such as the type of goods being exported, the destination country, the mode of transportation, and the creditworthiness of the importer, can influence the choice of financing. 2. Credit risk: The financial institution will assess the creditworthiness of the exporter and the importer to determine the level of credit risk associated with the transaction. If the credit risk is high, the financial institution may opt for pre-shipment financing to reduce its exposure. 3.Cash flow requirements: If the exporter needs cash to finance the production and shipment of goods, pre-shipment financing may be more suitable. If the exporter needs cash to cover operating expenses and working capital needs after the shipment of goods, post-shipment financing may be more appropriate. 4.Collateral: The financial institution may require collateral to secure the financing, such as export receivables, bills of exchange, or letters of credit. The type and quality of collateral can influence the choice of financing. 5. Cost of financing: The cost of financing, including interest rates, fees, and charges, can vary between pre-shipment and post-shipment financing. The financial institution will consider the cost of financing in relation to the exporter’s cash flow requirements and the level of credit risk associated with the transaction. Based on these factors, the financial institution will determine which type of financing is more appropriate for the exporter’s specific needs and the terms of the trade transaction.
Difference between export bill discounting and export factoring?
Export bill discounting and export factoring are two financing options that are available to exporters to manage their cash flow and mitigate the risk of non-payment by their customers. The key difference between export bill discounting and export factoring is the nature of the transaction and the party that assumes the credit risk. Export bill discounting refers to a financing arrangement in which an exporter receives immediate cash payment from a bank or a financial institution for the export receivables (i.e., bills of exchange) that are due at a future date. In other words, the exporter sells its export receivables to the bank or financial institution at a discount and receives the cash immediately. The bank or financial institution assumes the credit risk of the exporter’s customer and collects the payment on the due date. On the other hand, export factoring is a financing arrangement in which an exporter sells its export receivables to a factoring company, which then assumes the credit risk of the exporter’s customer and provides cash advances against the receivables. In addition to financing, the factoring company also provides other services such as credit protection, collection, and sales ledger administration. Therefore, the key difference between export bill discounting and export factoring is that in export bill discounting, the bank or financial institution only provides financing and assumes the credit risk, whereas in export factoring, the factoring company provides financing as well as other services and assumes the credit risk.
What all documents required from exporters or importers?
We will be requiring company kyc documents, UBOs KYC document, buyer financials, Past sales ledger, Sample PO and Invoice to provide our bill discounting or Export factoring or import financing services.