TReDS (Trade Receivables Discounting System) is an RBI-regulated digital platform that facilitates the financing of trade receivables of Micro, Small and Medium Enterprises (MSMEs) from corporate buyers through invoice discounting. It brings together MSME sellers, large corporate buyers, and financiers on a single electronic platform to enable seamless, transparent, and efficient invoice financing.
TReDS Platforms in India, such as M1xchange, offer a safe and secure ecosystem where approved invoices are uploaded and financiers bid to offer the best possible discounting rates. The seller receives early payment, while the financier collects the invoice amount from the buyer on the due date.
With TReDS Online, the entire process, from invoice upload to fund disbursement is paperless and fast. TReDS Registration is mandatory for companies over 250cr turnover. Through Online TReDS Registration, businesses can onboard quickly and start benefiting from early payments and improved cash flows.
The TReDS Platform plays a critical role in strengthening India’s MSME ecosystem by unlocking working capital and fostering financial inclusion.
TReDS is an innovative online platform that enables MSMEs to receive quick and easy financing against their trade receivables. TReDS platforms in India, such as M1xchange TReDS, provide a digital marketplace for MSMEs to sell their invoices to corporates and banks at a discounted rate.
To access TReDS, users can register online through the TReDS portal, complete the TReDS registration process, and log in to the platform. This online platform facilitates the discounting of invoices, helping MSMEs overcome liquidity challenges and achieve better financial stability.
Easy access to fund
No paperwork
Single platform for Sellers, Buyers, and Financiers
Transact online
Competitive discounting rates
Seamless data flow
The Reserve Bank of India granted approval to Mynd Solutions Pvt Limited to set up and operate M1xchange, the first trade receivable exchange in India. M1xchange has digitally transformed the process of gaining access to working capital for MSMEs via invoice discounting through multiple financiers. TReDS is an answer to the everlasting cash flow issues of the MSMEs in India and effective solution to drive the MSME sector to the next phase of Indian economy.
“The Department of Micro, Small and Medium Enterprises issued a notification stating that all companies registered under Companies Act and having a turnover of more than INR 250 crores and all Central Public Sector Enterprises are required to on board a TReDS platform, thus making TReDS registration mandatory for such companies. The Registrar of Companies (RoC) in every state has been nominated to be the competent authority to monitor the compliance of this notification.”
MSMEs get greater access to finance, at competitive rates without providing any additional collateral. Also, the financing is without recourse to the MSMEs.
Corporates save on procurement cost through an improved negotiation of financing term for its vendors.
Financiers get an opportunity to build PSL asset portfolio on Trade Receivable Exchange platforms like M1xchange.
On November 2, 2018 the Department of Micro, Small and Medium Enterprises issued a notification stating that all companies registered under Companies Act and having a turnover of more than INR 500 crores and all Central Public Sector Enterprises are required to on board a TReDS platform, thus making TReDS registration mandatory for such companies. The Registrar of Companies (RoC) in every state has been nominated to be the competent authority to monitor the compliance of this notification.
MSMEs get greater access to finance, at competitive rates without providing any additional collateral. Also, the financing is without recourse to the MSMEs.
Corporates save on procurement cost through an improved negotiation of financing term for its vendors.
Financiers get an opportunity to build PSL asset portfolio on Trade Receivable Exchange platforms like M1xchange.
STEP 1
Submit KYC details - one time
STEP 2
Sign agreement - one time
STEP 3
Financiers assign limits -
unsecured
STEP 4
Ready for transaction!
STEP 1X10
Submit KYC details -
once for every bank
STEP 2X10
Sign agreement - once
for every bank
STEP 3X10
Financiers assign limits -
may be secured
STEP 4
Ready for transaction!
TReDS offers MSMEs access to timely, collateral-free working capital by allowing them to discount their receivables from reputed corporate buyers. On TReDS Platforms in India like M1xchange, MSMEs benefit from faster payments, better cash flow management, and reduced credit risk. The entire TReDS Online process is transparent, digital, and competitive, enabling MSMEs to get the best financing rates. With easy TReDS Registration Online, MSMEs can unlock funds stuck in receivables and scale operations without relying on traditional loans. The TReDS Platform empowers small businesses to grow with financial independence and healthier cash cycles.
Yes, as per government guidelines, TReDS Registration is mandatory for corporates with a turnover of ₹250 crore and above. These companies are required to register on any of the RBI-approved TReDS Platforms in India, such as M1xchange. TReDS Registration Online ensures that MSME suppliers to these corporates can access early payments through digital invoice discounting. By participating in the TReDS Platform, corporates contribute to improved liquidity for their vendors while maintaining strong supply chains. This mandatory compliance fosters financial inclusion and promotes MSME growth through structured, transparent transactions on the TReDS Online system.
TReDS offers MSMEs access to timely, collateral-free working capital by allowing them to discount their receivables from reputed corporate buyers. On TReDS Platforms in India like M1xchange, MSMEs benefit from faster payments, better cash flow management, and reduced credit risk. The entire TReDS Online process is transparent, digital, and competitive, enabling MSMEs to get the best financing rates. With easy TReDS Registration Online, MSMEs can unlock funds stuck in receivables and scale operations without relying on traditional loans. The TReDS Platform empowers small businesses to grow with financial independence and healthier cash cycles.
Ans. TReDS is an online platform that enables MSMEs to discount their invoices and receive immediate payment. TReDS platforms in India, such as M1xchange TReDS, provide a digital marketplace for MSMEs to sell their trade receivables to corporates and banks. To access TReDS, users can register online through the TReDS portal, complete the TReDS registration process, and log in to the platform. This facilitates quick and easy financing for MSMEs, improving their cash flow and reducing their dependence on traditional financing methods.
Ans. The primary purpose of TReDS is to provide a platform for MSMEs to receive quick and easy financing against their trade receivables. TReDS platforms in India, such as M1xchange TReDS, aim to improve the cash flow of MSMEs, reducing their dependence on traditional financing methods. By facilitating the discounting of invoices, TReDS helps MSMEs overcome liquidity challenges and achieve better financial stability.
Ans. To be eligible for TReDS, businesses must meet the following criteria:
Eligible businesses can register online through the TReDS portal, such as M1xchange TReDS, and access the platform after completing the TReDS registration process and logging in.
Ans. M1xchange TReDS is one of the platforms approved by the RBI for TReDS. As an RBI-approved TReDS platform, M1xchange provides a digital marketplace for MSMEs to sell their trade receivables to corporates and banks, facilitating quick and easy financing.
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