Exploring the Treds Portal- A Digital Journey.pptx

A digital platform called TReDS (Trade Receivable Discounting System) was created to assist Indian MSMEs and other companies in increasing their cash flow by making it easier for them to discount their trade receivables.

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1. Exploring the Treds Portal: A Digital Journey

2. A digital platform called TReDS ( Trade Receivable  Discounting System) was created to assist Indian MSMEs and other companies in increasing their cash flow by making it easier for them to discount their trade receivables. Businesses can obtain working capital more effectively and transparently thanks to this approach, which eventually improves their financial stability and expansion prospects. In this context,  trade receivable meaning  is the amount that customers owe a business for goods or services rendered but not yet paid for. This blog post will explore what   the   TReDS platform  means in detail.

3. What Is the Process of TReDS ? Uploading invoices : The TReDS platform receives invoices from sellers, many of which are MSMEs. Invoices verification : The platform confirms that the invoices are legitimate and eligible. Invoice discounting : The sellers receive instant cash when a factoring business buys these suppliers' invoices at a discounted rate.

4. Collection of payment : When the invoice is due, the factoring business gets the purchasers' money. Here is the process associated with TReDS . The benefits of TReDS include: Transparency and automation : There is no possibility of any mistreatment because human intervention is not necessary because the entire procedure is completed electronically.   A simple and paperless procedure : TReDS reduces a substantial amount of paperwork, which simplifies the procedure for MSME suppliers.

5.   Faster finance turnaround times and faster transactions : TReDS enables quicker bill approval and payment against trade receivables than a traditional factoring deal. The method of determining competitive prices : MSME suppliers may be certain that they will receive the best price for their invoices because auctions handle the entire process. Payment deficits : MSME suppliers are paid promptly when their invoices are approved, negating the need for payment chasing.

6.   A working capital that works : As TReDS eliminates the need for MSME suppliers to wait until the invoice's due date to be paid, they may boost their liquidity.   A variety of funding options : Beyond standard bank loans and advance payments, TReDS offers MSMEs other financing alternatives, including supply chain finance. The benefits listed above show how this platform can be the option for MSMEs.

7. Factors to Consider Before Choosing a TReDS Platform   Accreditation and legitimate registration : Verifying if the TReDS platform is authorised by a TReDS Exchange and registered with the Reserve Bank of India (RBI) is essential. Its credibility is demonstrated by this kind of accreditation and registration. They also ensure that the platforms maintain high service standards, operate safely, and follow stringent criteria.   Charges and fees : To prevent unforeseen expenses, carefully weigh all fees and charges before choosing this platform. Certain systems may have unstated costs, like maintenance, withdrawal, or inactivity fees.

8.   TAT (Turnaround Time):  When choosing this platform, TAT (Turnaround Time) needs to be taken into account. This is due to the fact that a quicker TAT implies that commercial transactions are handled more quickly. They will be able to seize market opportunities right away as a result. This is particularly crucial in erratic markets where prices are subject to abrupt fluctuations. Security : It is one of the most important considerations when selecting a TReDS platform. This is because there are a number of cyberthreats that have the potential to seriously impair finances. Therefore, a safe platform reduces these risks by utilising the best security techniques available.

9.   Assistance to clients : By ensuring that any issues consumers may have been promptly fixed, dependable customer service lowers the possibility of losses. Therefore, before using this platform, company owners should consider this problem. When selecting a trustworthy  TReDS portal , prioritise these key considerations. So here are is the information related to this kind of platform. As of right now, the RBI has authorised three businesses to create the  TReDS platform . Mynd Solutions Pvt. Ltd. is among the businesses that have been granted approval for it. We'll talk about this TReDS gateway here.

10. What is M1xchange? M1xchange is a Trade Receivables Discounting System ( TReDS ) platform, launched by Mynd Solutions Pvt. Ltd. in 2017. It was established following the Reserve Bank of India's (RBI) 2015 approval for three entities to create such platforms. Operating under the Payment and Settlement System (PSS) Act of 2007, M1xchange connects Micro, Small, and Medium Enterprises (MSMEs) with a wide network of banks and Non-Banking Financial Companies (NBFCs). This connection enables MSMEs to discount their invoices and bills of exchange, converting them into immediate cash flow at competitive rates through a transparent bidding process.

11. M1xchange is supported by prominent investors including Amazon, Mayfield, BEENXT, IndiaMART , and SIDBI Venture Capital Limited. Conclusion This blog has explored  Trade Receivables Discounting System  ( TReDS ) platforms, detailing their function, MSME benefits, and selection criteria. Notably, the RBI approved three TReDS platforms in 2015, leading to Mynd Solutions' launch of M1xchange in 2017. M1xchange enables MSMEs to access competitive financing by discounting invoices through a transparent, multi-lender bidding process.

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