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M1 - Online Exchange for Trade Receivables 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”). M1 aims to provide MSMEs Supply chain related cash flow finance at competitive rates through an open bid process via multiple financiers. Financing on M1 is “Without Recourse” to MSME supplier as per RBI guidelines. M1 employs the latest technologies to ensure the authenticity of the underlying transactions. Mynd Online National Exchange has been launched in April 2017, to set-up and operate TReDS under the Payment and Settlement System (PSS) Act 2007. Mynd solutions is one of the very few entities approved by RBI to set up this online platform www.m1xchange.com which is known as M1xchange
TREDS
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Understanding TReDS Trade Receivables Discounting System is a welcoming step by the RBI to regulate the trade receivables between MSMEs, large corporations and financiers. This is beneficial not just for these individual players, but for the entire economy of the nation. TReDS is an institutional mechanism set up in order to facilitate the financing of trade receivables of MSMEs from corporate buyers through invoice financing by multiple financiers. This step is deemed to augment the trade account receivable management of the micro small & medium enterprises. MSMEs, despite their important role in the Indian economy continue to face constraints in obtaining adequate finance, particularly in their ability to convert trade receivables into liquid funds. www.m1xchange.com
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. 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. www.m1xchange.com
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
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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. 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 Corporates. www.m1xchange.com
WHY TREDS Trade Receivables Discounting System is a welcoming step by the RBI to regulate the trade receivables between MSMEs, large corporations 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, standardizes the process of funding MSMEs via Invoice Discounting. TReDS addresses the gaps in MSME industry as enterprises face challenges in getting their payments on time, thus creating working capital discrepancies. TReDS is a timely and effective solution to drive the MSME sector to the next phase of Indian economy.
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Why TReDS on M1xchange?
- Trade discounting platform approved by RBI. - Payment is processed in T+2 days. - Suppliers can choose the best factoring companies on parameters such as transparency, customer confidentiality, factoring rates and fees. - Alternate, efficient funding system for making vendor payments. - Quick finance of trade receivables at moderate rates. - Financiers can fulfil PSL targets efficiently in less time. www.m1xchange.com
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Address : 296, Udyog Vihar, Phase-IV, Gurgaon - 122001 Haryana, India Phone : 1800-103-7261 Email : sales@m1xchange.com Website : www.m1xchange.com www.m1xchange.com