TReDS - Trade Receivables Discounting System
It's an electronic platform set up to facilitate this option of invoice discounting (factoring) or working capital financing facility to MSME suppliers, who deal with large corporate houses, government departments or PSUs, and have signed long credit terms with their customers, of say, over 30 days.
Participants on these platforms are Sellers, Buyers, and Financers. Sellers need to be MSME entities with valid Udyam registration. Buyers must be large corporate houses, and Financers are banks and NBFCs.
On completion of registration at any of the three available portals, viz. rxil.in, m1xchange.com or invoicemart.com, the invoices against which the vendor wants early access to funds are uploaded. Once the customer approves those invoices, the financers would bid with terms of discount they are willing to offer. The MSME vendor is free to select the financer offering the best terms of financing.
P.S. I personally have not used this website, but would love for anyone who has any experience of it to share it in the comments and let me know.
