TReDS a good alternate source of funding for MSMEs, say experts at PHDCCI Virtual Conference

CHANDIGARH: “Trade Receivables Discounting System TReDS a good alternate source of funding for MSMEs” said experts while deliberating at a Video Conference on Trade Receivables Discounting System organized by PHD Chamber of Commerce and Industry (PHDCCI).

It was observed that TReDS allows MSMEs to receive money upfront which helps them to resolve their working capital problems, creating room for a more productive and financially sound business environment.

Mohit Jain, Chairman, Haryana State Chapter, PHDCCI said that MSMEs are the back bone of Indian Economy and despite the important role played by them in country’s overall economic growth, they continue to face constraints in obtaining adequate finance, particularly in terms of their ability to convert their trade receivables into liquid funds. TReDS offers a promising platform for solving their working capital issues and in today’s program, experts shall highlight the benefits of this platform.

Presenting the Industry perspective Anil Khaitan, Former, President and Mentor, PHD-MSME Mentoring & Guidance Centre stated discounting receivables can be a good source of finance for the cash starved MSMEs, particularly because it is an off balance sheet finance. He said that although the Government had mandated all big corporates and Central Government PSUs to register on TReDS platform but very few of them have come on board on this platform.