TReDS is an institutional mechanism set up in order to facilitate the financing of trade receivables of MSMEs from corporate buyers through multiple financiers. MSMEs, despite their important role in the Indian economy, MSMEs continue to face constraints in obtaining adequate finance, particularly in their ability to convert trade receivables into liquid funds. http://www.m1xchange.com/treds.php

1. Source – M1 Xchange

2. Source – M1 Xchange
About M1 Xchange
M1’s Trade Receivables Discounting System “TReDS” is an online exchange being
set up under the approval of Reserve Bank of India (RBI) to facilitate discounting
of invoices and Bills of exchange on a PAN India basis. Key participants in TReDS
are Micro, Small & Medium Enterprises “MSME” (“the Suppliers ”), large
Corporates including PSUs and Govt. Departments (“the Buyers”) and
Banks/NBFCs (“the Financiers”).

3. Source – M1 Xchange

4. Source – M1 Xchange
What is TReDS?
TReDS is an institutional mechanism set up in order to facilitate the financing of
trade receivables of MSMEs from corporate buyers through multiple financiers.
MSMEs, despite their important role in the Indian economy, MSMEs continue to
face constraints in obtaining adequate finance, particularly in their ability to
convert trade receivables into liquid funds. In order to address this issue, the
Reserve Bank of India granted approval to three applicants to set up and operate
TReDS.

5. Source – M1 Xchange
Highlights of TReDS
- MSMEs get greater access to finance.
- Corporates save on procurement cost through an improved negotiation of
financing term for its vendors.
- Financiers get an opportunity to build PSL asset portfolio on Trade Receivable
Exchange platforms like M1xchange.

6. Source – M1 Xchange
M1 TReDS
Mynd Solutions’ TReDS platform, M1xchange, allows MSMEs to upload their
receivables to the system and get them financed. This not only gives them
greater access to finance but also puts greater discipline on corporates to pay
their dues on time. Further, as the underlying entities are the same (MSMEs and
corporate buyers) Mynd's TReDS deals with both factoring as well as reverse
factoring so that higher transaction volumes come into the system and facilitate
in better pricing.

7. Source – M1 Xchange
Onboarding M1xchange the Corporates enjoy savings on procurement cost
through an improved negotiation of financing term for its vendors. Moreover,
the Corporates save on the financing cost by extending their credit period and
augmenting their payment cycle. Being a completely digital platform the
transactions are 100% transparent and the overall administration cost for vendor
financing, payments and settlements are significantly reduced lowering the
overall cost of trade. M1 enables the Corporates to have access to multiple
financiers on a single platform.

8. Source – M1 Xchange
The Financiers, on the other hand, have an
opportunity to build PSL asset portfolio through
M1.
The requirement of minimum documentation
elevates the ease of operation with the facility to
make a better decision through the availability of
key information of Suppliers and Corporate.

9. Source – M1 Xchange
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