India’s Trade Receivables E-discounting System (TrEDs) platforms are drawing up plans to on-board as many as a million micro, small, and medium enterprises (MSMEs) over the next couple of years.
About TReDS
TReDS is an online platform set up to facilitate MSMEs to unlock working capital by converting their receivables into cash.
TReDS gives capital access to the credit-starved small businesses in India.
TReDS was introduced by the Reserve Bank of India (RBI) to address the challenges MSMEs face in accessing finance and working capital.
Three TReDS platforms are presently operational in India. Receivables Exchange of India Ltd (RXIL), M1xchange and Invoicemart. These three platforms are registered with RBI.
TReDS enables the MSMEs in securing financial assistance digitally at competitive terms and without any collateral security, based on the invoices / bills for supplies to large corporates.
This also improves the liquidity for MSMEs resulting in better cashflow management.
