Trade Reversible Discounting

System

M1xchange

What is TReDS?TReDS is an institutional mechanism set up in order to facilitate the trade receivable financing of MSMEs from corporate buyers through multiple financiers. MSMEs, despite their important role in contributing to the Indian economy, continue to face constraints in obtaining adequate finance. One big factor which affects the ability of MSMEs to convert trade receivables into liquid funds are slow paying invoices. To address the financing related issues faced by MSMEs in India, RBI in 2014 introduced the concept of TReDS, a mechanism of trade receivables financing for MSMEs on a secure digital platformInvoice discounting on TReDS involves three participants MSME Supplier, Corporate Buyer and Financier. The invoice is uploaded by either buyer or supplier depending on the method of discounting and is approved by the other party. Once the invoice is approved the financiers on the platform start to bid on the invoice. The supplier accepts the bid and the discounted amount is credited in its account in T+1 day, where T is the day of acceptance.

How TReDS works?Factoring & Reverse Factoring are two methods of bill discounting on a TReDS platform. Both of these methods are designed to speed up the vendor payment process without disturbing the balance sheet of any stakeholder.

In Factoring, the Supplier raises the invoice and the Buyer verifies the same. This enables the financiers which are also the invoice factoring company to bid against the verified and approved invoice. Once the supplier accepts the bid, the payment is processed in T+1 days. TReDS gives this flexibility to the Suppliers to choose the best factoring companies on diverse parameters such as transparency, customer confidentiality, factoring rates & fees.

Why TReDS?Trade Receivables Discounting System is a welcoming step by the RBI to regulate the trade receivables between MSMEs, large corporates and financiers. This is beneficial not just for these individual players, but for the entire economy of the nation.

To decrease the financing concerns faced by MSMEs in India, RBI introduced the concept of TReDS in 2014, an institutional mechanism for financing trade receivables on a secure digital platform. Trade receivable exchanges such as M1xchange, are helping the MSME supplier get early payment against their invoices with minimum paperwork in just 2-3 days. Since invoice disc

M1xchangeBill Discounting Facility by Trade Receivable Discounting SystemM1 provides an online discounting and Trade Receivable Discounting System. It is a digital platform to support micro, small and medium enterprises (MSMEs) to get their bill financed at a competitive rate through an auction where multiple registered financers can participate. M1 Provide best Bill Discounting Facility.M1 is a leading global business process and technology management company, offering Trade Receivable Discounting Systems. We are the platform that serves as a transparent and quick medium for the small scale players to avail funds at cheaper rates through banking and factoring companies.To know more about us visit our website: https://www.m1xchange.com/

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