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  • Financial Express

How MSMEs can get cash against unpaid invoices online? Check more details on TReDS here

Credit and finance for MSMEs: Despite the role played in the economic growth of the country, the availability of adequate finance remains a constraint for MSMEs, particularly in terms of their ability to convert their trade receivables or bills into liquid cash or funds. To address this issue by financing trade receivables from corporate and other buyers including government departments and public sector units through multiple financiers, the Reserve Bank of India (RBI) introduced Trade Receivables Discounting System (TReDS) back in 2014.

In 2017, the central bank issued licenses to three non-bank companies M1xchange, Invoicemart (a joint venture of Axis Bank and mjunction services), and RXIL (a joint venture between SIDBI and NSE) to operate on the TReDS mechanism for financing trade receivables through multiple financiers. The RBI approved the fourth entity – the global on-demand working capital platform C2FO to set up and operate an invoice discounting platform under TReDS in November 2022.

Read more at Financial Express

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