Trade Receivables e-Discounting System (TReDS)

TReDS is an electronic platform facilitating the financing/discounting the Trade receivables of the Micro, Small and Medium Enterprises (MSMEs) through multiple financiers. This scheme was introduced by RBI to meet the liquidity crisis of the MSMEs by providing a mechanism for financing their trade receivables. According to RBI, the TReDS would ‘facilitate the discounting of both invoices as well as bills of exchange.’ This way, MSME sellers, corporate buyers, and financiers (banks and NBFCs) would be linked on a common platform. After approval from both the seller and the buyer, the financiers would bid on invoices and make the payment to the seller. The process to join any of the TReDS platforms is short and quick.

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