Exploring the Treds Portal- A Digital Journey
                     Exploring the Treds Portal: A Digital 
Journey
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.
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.
• 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.
•  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.
•  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.
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.
•  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.
•  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.
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. 
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.
1800-103-7261
[email protected]
https://www.m1xchange.com/
https://www.facebook.com/M1xchange/
https://www.youtube.com/channel/UCX1gcr9cD9HAQ3Q-pzFBn9g
https://www.linkedin.com/company/mynd-online-national-exchange/
https://x.com/M1xchange