Trade Reversible Discounting System
                     Trade Reversible 
Discounting 
System
M1xchange
What is TReDS?
TReDS is an institutional mechanism set up in order to facilitate the trade 
receivable financing of MSMEs from corporate buyers through multiple 
financiers. MSMEs, despite their important role in contributing to the Indian 
economy, continue to face constraints in obtaining adequate finance. One 
big factor which affects the ability of MSMEs to convert trade receivables 
into liquid funds are slow paying invoices. To address the financing related 
issues faced by MSMEs in India, RBI in 2014 introduced the concept of 
TReDS, a mechanism of trade receivables financing for MSMEs on a secure 
digital platform
Invoice discounting on TReDS involves three participants MSME Supplier, 
Corporate Buyer and Financier. The invoice is uploaded by either buyer or 
supplier depending on the method of discounting and is approved by the 
other party. Once the invoice is approved the financiers on the platform 
start to bid on the invoice. The supplier accepts the bid and the discounted 
amount is credited in its account in T+1 day, where T is the day of 
acceptance.
How TReDS works?
Factoring & Reverse Factoring are two methods of bill 
discounting on a TReDS platform. Both of these methods 
are designed to speed up the vendor payment process 
without disturbing the balance sheet of any stakeholder.
In Factoring, the Supplier raises the invoice and the Buyer 
verifies the same. This enables the financiers which are also 
the invoice factoring company to bid against the verified 
and approved invoice. Once the supplier accepts the bid, 
the payment is processed in T+1 days. TReDS gives this 
flexibility to the Suppliers to choose the best factoring 
companies on diverse parameters such as transparency, 
customer confidentiality, factoring rates & fees.
Why TReDS?
Trade Receivables Discounting System is a welcoming step 
by the RBI to regulate the trade receivables between 
MSMEs, large corporates and financiers. This is beneficial 
not just for these individual players, but for the entire 
economy of the nation.
To decrease the financing concerns faced by MSMEs in 
India, RBI introduced the concept of TReDS in 2014, an 
institutional mechanism for financing trade receivables on a 
secure digital platform. Trade receivable exchanges such as 
M1xchange, are helping the MSME supplier get early 
payment against their invoices with minimum paperwork in 
just 2-3 days. Since invoice disc
M1xchange
Bill Discounting Facility by Trade Receivable 
Discounting System
M1 provides an online discounting and Trade 
Receivable Discounting System. It is a digital 
platform to support micro, small and medium 
enterprises (MSMEs) to get their bill financed at a 
competitive rate through an auction where 
multiple registered financers can participate. M1 
Provide best Bill Discounting Facility.
M1 is a leading global business process and 
technology management company, offering Trade 
Receivable Discounting Systems.  We are the 
platform that serves as a transparent and quick 
medium for the small scale players to avail funds at 
cheaper rates through banking and factoring 
companies.
To know more about us visit our website: 
https://www.m1xchange.com/
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M1xchange