Step-by-Step Guide to Using the TReDs Portal
                     Step-by-Step Guide to Using the TReDs 
Portal
TReDS full form is Trade Receivables Exchange Discounting System, 
and it is a platform that helps micro, small, and medium-sized 
businesses get capital faster. These MSMEs might sell their invoices or 
trade receivables to lenders or financiers to raise money for daily 
operating capital. The sum that a firm is owed in return for the goods 
and services it has sold to its clients is known as trade receivables.
This platform reduces processing time for the payment flow, ensures 
their transparency, and expedites them. Additionally, it reduces the 
challenges posed by late payments, which often impair MSMEs’ 
capacity to smoothly operate. In this blog post, you will be provided 
with the step-by-step guide to using the TReDS portal.
To begin, let’s examine the primary participants in this platform.
Sellers
On the TReDS platform, these sellers are micro, small, and medium-
sized businesses (MSMEs). They can send out invoices on the website 
and quickly secure financing for these invoices. In this scenario the 
method is to be known as factoring, invoice financing, or invoice 
discounting.
Buyers
The government organisations, companies, PSUs, and other 
enterprises that have registered on this platform make up these 
buyers. 
By ensuring that they approve invoices as soon as possible to 
allow payments to their suppliers (MSMEs), they can utilise the 
portal to manage payables effectively. This type of supply chain 
finance will guarantee that the supply chain is trouble-free and 
easy to operate.
Financers
These consist of the banks and NBFCs that participate in the 
TReDS process as lenders. They bid on the invoices and provide 
MSMEs the funds they require. By providing funds at a relatively 
low interest rate or discount, this short-term financing method 
offers a secure and transparent way to access capital.
Now, here’s a step-by-step guide to using this platform:
Create an account and register
The initial step for MSMEs (sellers) and funders is TReDs 
registration. For verification purposes, the necessary document 
needs to be provided. Access to the platform is possible upon 
verification.
Upload invoices
Once the registration process is completed, MSMEs will have to 
upload their valid invoices to the website, which represent goods 
or services sold to large corporations.
Invoice auctioning
The invoices will be up for auction once they are uploaded on the 
platform. Depending on their credit histories, this enables other 
lenders and financiers to bid to buy them at a reduced price.
Acceptance of invoices
The corporation or business that purchases the goods or services (the 
“buyer”) must approve the invoice on the TReDS platform. As a result, 
the invoice will have legal validity.
Receive payment immediately
Once accepted, the MSME can select the funding option that best 
suits their needs. 
The discounted bill amount, the terms of payment, and other 
details can be agreed upon at this stage. The payment is then made 
immediately to the MSME.
Repaying the amount
On the scheduled date, the buyer promptly pays the financier the 
invoice amount through the TReDS platform.
It is crucial to remember that the RBI authorises businesses to 
develop TReDS platforms. After reading the thorough instructions, 
let’s determine which companies have received RBI approval.
Which companies are approved by the RBI for TReDS?
Three businesses have received certification from the RBI to install 
the Trade Receivable Discounting System (TReDS) platform. 
Mynd Solutions Pvt. Ltd. is one of the businesses that was 
approved by RBI and thus was able to create M1xchange in 2017. It 
was created with the goal of establishing an international trade 
finance platform that would transform access to liquidity and 
foster growth that is equitable.
Here are some factors to know about that have contributed to its 
favorable standing in this field:
• It has made the organization's clients the focal point of 
whatever they do.
• It has established enduring bonds of trust with clients.
• It provides high-quality services and aims to surpass client 
expectations.
M1xchange has renowned brands as their clients like Amazon, Mayfield, 
BEENXT, IndiaMART, and SIDBI Venture Capital Limited.
Conclusion
A digital platform called the Trade Receivables Exchange Discounting 
System, or TReDs, allows micro, small, and medium-sized enterprises to 
swiftly access funding. Any size company can sell its invoices or trade 
receivables to financiers or lenders to raise money for daily working capital.
Mynd Solutions Pvt. Ltd. is one of the companies authorised by the Reserve 
Bank of India (RBI) to establish a Trade Receivable Discounting System 
(TReDS) platform. Launched in 2017, M1xchange has since become a 
prominent and widely recognised TReDS platform.
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