What is trade receivable discounting system?

TReDS is an electronic platform that allows businesses to auction trade receivables such as invoices, and the platform serves as a transparent and quick medium for the small scale players to avail funds at cheaper rates, through banking and factoring companies. As an automated system driven platform, Trade Receivable Discounting System facilitates auction of trade receivables at competitive market rates through transparent bidding process by multiple financiers.

Mynd has set up M1xchange for financing the receivables of MSME sector and there by reducing the business risk of MSME for the collection of receivables.

Key benefits of invoice discounting and exchange services -

1. Minimise cost for AAA industries.

2. It does not add borrowings or any additional liability on the balance sheet.

3. It does not use the cash flows of the buyer for the pre-payment.

4. Much faster turnaround than unconventional supply chain facilities by the banks. Payment is realised in 1 day from approval of invoice by Buyer.

5. Risk of collection from Buyer is reduced as there is no recourse on AAA industries.

6. Minimal paperwork one time and thereafter invoices are discounted digitally.

7. Security of digital platform for confidentiality of information.

8. Minimise the duplicate payments and other operational risks

9. Can be integrated with ERP systems and avoid manual processes

M1xchange,the platform has enabled discounting of over INR 3226cr worth of invoices by the end of May ’19.