{"id":5514,"date":"2022-06-13T08:16:02","date_gmt":"2022-06-13T08:16:02","guid":{"rendered":"https:\/\/www.indifi.com\/blog\/?p=5514"},"modified":"2026-06-22T19:09:49","modified_gmt":"2026-06-22T19:09:49","slug":"what-is-treds-features","status":"publish","type":"post","link":"https:\/\/www.indifi.com\/blog\/what-is-treds-features\/","title":{"rendered":"What Is TReDS? How It Benefits MSMEs in 2026: A Complete Guide"},"content":{"rendered":"<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"273\" src=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/06\/Treds-500x273.jpg\" alt=\"\" class=\"wp-image-15269\" srcset=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/06\/Treds-500x273.jpg 500w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/06\/Treds-768x419.jpg 768w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/06\/Treds.jpg 1024w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\"><strong>Key Takeaways<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>TReDS is an RBI-regulated digital marketplace that allows MSMEs to discount unpaid invoices and access working capital without collateral.<\/li>\n\n\n\n<li>Three original platforms operate under TReDS: RXIL, M1xchange, and Invoicemart (operated by A.TREDS Ltd).<\/li>\n\n\n\n<li>Financing through TReDS is typically available within 24 to 48 hours of buyer acceptance at a discount rate of 7 to 10% per annum.<\/li>\n\n\n\n<li>TReDS is without recourse to the MSME supplier, meaning the MSME is not liable if the corporate buyer defaults.<\/li>\n<\/ul>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.indifi.com\/blog\/what-is-treds-features\/#What_is_TReDS_Portal\" >What is TReDS Portal?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.indifi.com\/blog\/what-is-treds-features\/#TReDs_Portal_%E2%80%93_How_Did_It_Come_Into_Play\" >TReDs Portal &#8211; How Did It Come Into Play?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.indifi.com\/blog\/what-is-treds-features\/#Key_Features_Of_TReDs\" >Key Features Of TReDs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.indifi.com\/blog\/what-is-treds-features\/#RBI-Approved_TReDS_Platforms_in_2026\" >RBI-Approved TReDS Platforms in 2026<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.indifi.com\/blog\/what-is-treds-features\/#1_RXIL_Receivables_Exchange_of_India_Ltd\" >1. RXIL (Receivables Exchange of India Ltd)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.indifi.com\/blog\/what-is-treds-features\/#2_M1xchange\" >2. M1xchange<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.indifi.com\/blog\/what-is-treds-features\/#3_Invoicemart_operated_by_ATREDS_Ltd\" >3. Invoicemart (operated by A.TREDS Ltd)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.indifi.com\/blog\/what-is-treds-features\/#TReDS_vs_Invoice_Discounting_2026\" >TReDS vs Invoice Discounting 2026<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.indifi.com\/blog\/what-is-treds-features\/#Advantages_Of_TReDs_Portal\" >Advantages Of TReDs Portal:&nbsp;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.indifi.com\/blog\/what-is-treds-features\/#For_MSME_Sellers\" >For MSME Sellers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.indifi.com\/blog\/what-is-treds-features\/#For_Corporate_Buyers\" >For Corporate Buyers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.indifi.com\/blog\/what-is-treds-features\/#For_Financiers_Banks_and_NBFCs\" >For Financiers (Banks and NBFCs)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.indifi.com\/blog\/what-is-treds-features\/#How_Does_TReDs_Assist_MSMEs\" >How Does TReDs Assist MSMEs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.indifi.com\/blog\/what-is-treds-features\/#FAQs\" >FAQs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.indifi.com\/blog\/what-is-treds-features\/#Q1_What_is_TReDS_full_form\" >Q1: What is TReDS full form?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.indifi.com\/blog\/what-is-treds-features\/#Q2_Who_can_use_TReDS_in_India\" >Q2: Who can use TReDS in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.indifi.com\/blog\/what-is-treds-features\/#Q3_Is_TReDS_mandatory_for_large_companies\" >Q3: Is TReDS mandatory for large companies?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.indifi.com\/blog\/what-is-treds-features\/#Q4_What_is_the_interest_rate_on_TReDS_financing\" >Q4: What is the interest rate on TReDS financing?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_TReDS_Portal\"><\/span><strong>What is TReDS Portal?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">\u00a0TReDS is an online marketplace where MSME suppliers can upload their invoices raised against large corporate buyers or government entities and offer them for discounting. Registered financiers, such as banks and NBFCs, bid competitively to purchase those receivables at a discount. The MSME receives most of the invoice value immediately, without waiting for the buyer&#8217;s payment cycle to complete.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The transaction is off-balance-sheet for the MSME, meaning it does not affect the business&#8217;s debt position. It is also without recourse if the buyer defaults; liability does not revert to the MSME supplier, as per RBI guidelines.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.indifi.com\/msme-loans\"><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"91\" src=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/05\/MSME-Loan-1-500x91.jpg\" alt=\"\" class=\"wp-image-5348\" srcset=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/05\/MSME-Loan-1-500x91.jpg 500w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/05\/MSME-Loan-1.jpg 716w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"TReDs_Portal_%E2%80%93_How_Did_It_Come_Into_Play\"><\/span><strong>TReDs Portal &#8211; How Did It Come Into Play?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The Reserve Bank of India first introduced the TReDS framework in 2014, recognising that delayed payments were a primary reason small businesses in India struggled to grow. In 2017, the RBI granted operating licences to three platforms.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By 2026, the TReDS ecosystem will have grown significantly: RBI data shows that over <a href=\"https:\/\/www.financialexpress.com\/business\/sme-msme-fin-rbis-treds-financed-this-many-msme-invoices-involving-rs-1-42-lakh-crore-till-feb-2023-3024476\/\">INR 1.4 lakh crore worth of invoices <\/a>were financed through TReDS platforms in the financial year 2023\u201324, compared to just INR 80 crore in 2017\u201318.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The government has also made TReDS registration mandatory for businesses with an annual turnover above INR 250 crore, as well as all Central Public Sector Enterprises, a move designed to accelerate adoption and ensure timely payments to MSME suppliers<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Features_Of_TReDs\"><\/span><strong>Key Features Of TReDs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Fully digital and automated process with no physical paperwork required<\/li>\n\n\n\n<li>Working capital accessible in as little as 24 to 72 hours after buyer acceptance<\/li>\n\n\n\n<li>Zero collateral financing is based entirely on the invoice and the buyer&#8217;s credit profile<\/li>\n\n\n\n<li>Competitive discount rates driven by multi-financier bidding<\/li>\n\n\n\n<li>Off-balance-sheet transactions do not affect the MSME&#8217;s debt-to-equity ratio<\/li>\n\n\n\n<li>Without recourse to the seller, the MSME is not liable if the buyer defaults<\/li>\n\n\n\n<li>Standardised processes across all RBI-approved platforms<\/li>\n\n\n\n<li>Supports shorter cash cycles, enabling MSMEs to take on more orders<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"RBI-Approved_TReDS_Platforms_in_2026\"><\/span><strong>RBI-Approved TReDS Platforms in 2026<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The RBI has authorised platforms to operate under the TReDS framework. The three original platforms licensed in 2017 remain the most widely used. As of 2026, additional platforms have also received RBI approval, further expanding the ecosystem.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_RXIL_Receivables_Exchange_of_India_Ltd\"><\/span><strong>1. RXIL (Receivables Exchange of India Ltd)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.rxil.in\/\">RXIL <\/a>is a joint venture between the Small Industries Development Bank of India (SIDBI) and the National Stock Exchange (NSE). It was the first TReDS platform to go live in India. RXIL serves a broad range of MSME types from manufacturers and component suppliers to service businesses and is particularly popular with MSMEs that supply to large public sector and government buyers. It&#8217;s backed by SIDBI, which gives it strong institutional credibility among businesses seeking their first exposure to invoice financing.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_M1xchange\"><\/span><strong>2. M1xchange<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.m1xchange.com\/\">M1xchange<\/a> is operated by Mynd Solutions Pvt Ltd and is backed by HDFC Bank. It is widely regarded as one of the most active TReDS platforms by transaction volume, and was the first trade receivable exchange to receive the RBI licence. M1xchange is well-suited to MSMEs in manufacturing, retail supply chains, and e-commerce logistics. It offers ERP and API integrations for businesses that want to automate invoice uploads, and has pioneered MSME-to-MSME financing, allowing smaller suppliers to discount receivables from other businesses, not only from large corporates.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Invoicemart_operated_by_ATREDS_Ltd\"><\/span><strong>3. Invoicemart (operated by A.TREDS Ltd)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A.TREDS Ltd is a joint venture between Axis Bank and Mjunction Services Ltd. Its platform, <a href=\"https:\/\/www.invoicemart.com\/\">Invoicemart<\/a>, focuses on simplifying the invoice discounting process for MSMEs and is known for its straightforward onboarding experience. Invoicemart is a strong option for MSMEs whose corporate buyers are already active on the platform, as buyer acceptance is a prerequisite for financing. It is widely used in sectors including steel, automotive components, and FMCG supply chains.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Note: As of 2026, additional platforms, including <a href=\"https:\/\/c2treds.com\/\">C2TReDS<\/a>, have also received RBI approval. MSMEs are advised to check the RBI website for the current list of authorised TReDS operators before registering.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"TReDS_vs_Invoice_Discounting_2026\"><\/span><strong>TReDS vs Invoice Discounting 2026<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Many MSMEs consider traditional invoice discounting offered by NBFCs and fintech lenders as an alternative to TReDS. The two are distinct in important ways. TReDS operates within a tightly regulated RBI framework; traditional invoice discounting does not. The comparison below helps MSMEs understand which option suits their situation.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Feature<\/strong><\/td><td><strong>TReDS<\/strong><\/td><td><strong>Traditional Invoice Discounting<\/strong><\/td><\/tr><tr><td>Regulation<\/td><td>RBI-regulated; operates under a licensed framework<\/td><td>Varies; typically governed by lender&#8217;s own policy<\/td><\/tr><tr><td>Speed<\/td><td>Financing typically within 24 to 48 hours of buyer acceptance<\/td><td>2 to 7 working days depending on the lender<\/td><\/tr><tr><td>Who can access<\/td><td>MSMEs supplying to registered corporate buyers or PSUs<\/td><td>Any business with invoices; not limited to MSME category<\/td><\/tr><tr><td>Cost<\/td><td>Competitive discount rates (7 to 10% p.a.) due to multi-lender bidding<\/td><td>Rates typically 15 to 24% p.a.; set by single lender<\/td><\/tr><tr><td>Transparency<\/td><td>Open bidding by multiple financiers; full rate visibility<\/td><td>Rate determined by lender; limited competitive visibility<\/td><\/tr><tr><td>Collateral<\/td><td>No collateral required<\/td><td>May require collateral depending on lender<\/td><\/tr><tr><td>Recourse<\/td><td>Without recourse to MSME supplier (as per RBI guidelines)<\/td><td>Often with recourse; MSME liable if buyer defaults<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">For MSMEs that supply to large registered corporates or government entities, TReDS typically offers lower rates and stronger regulatory protection. For businesses whose buyers are not on a TReDS platform, or who need faster access to credit without buyer involvement, working capital loans from NBFC partners may be more practical.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Advantages_Of_TReDs_Portal\"><\/span><strong>Advantages Of TReDs Portal:&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"For_MSME_Sellers\"><\/span><strong>For MSME Sellers<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Minimal documentation, the invoice and buyer acceptance are the primary requirements<\/li>\n\n\n\n<li>Fast receipt of funds, typically within 24 to 48 hours of acceptance<\/li>\n\n\n\n<li>No collateral required<\/li>\n\n\n\n<li>Without recourse, the MSME bears no liability for buyer default<\/li>\n\n\n\n<li>Lower financing costs compared to traditional working capital loans<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"For_Corporate_Buyers\"><\/span><strong>For Corporate Buyers<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Transparent tracking of payment obligations and due dates<\/li>\n\n\n\n<li>Automated and digital payment cycles reduce operational errors<\/li>\n\n\n\n<li>Strengthens supply chain relationships by ensuring MSME suppliers receive timely payments<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"For_Financiers_Banks_and_NBFCs\"><\/span><strong>For Financiers (Banks and NBFCs)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Access to a broader, regulated market of trade receivables<\/li>\n\n\n\n<li>Standardised, process-driven platform reduces operational risk<\/li>\n\n\n\n<li>Lower cost of customer acquisition through the TReDS marketplace<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Does_TReDs_Assist_MSMEs\"><\/span>How Does TReDs Assist MSMEs?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Small businesses can use TReDS to raise capital by uploading their trade receivables invoices that have already been accepted by a registered corporate buyer onto the platform. Once uploaded, registered financiers bid on those invoices. The MSME accepts the most favourable bid, and the discounted amount is credited to their account, often within one to two working days.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Because this is an off-balance-sheet transaction, it does not increase the MSME&#8217;s debt burden. The financier collects the full invoice value from the corporate buyer on the due date. For MSMEs facing consistent cash-flow challenges due to long payment cycles, TReDS can serve as a revolving source of working capital.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To register, MSMEs need to be Udyam-registered and approach any of the three authorised platforms directly. Registration is free. Once onboarded, the MSME&#8217;s corporate buyer must also be registered on the same platform for discounting to be initiated.\u00a0<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.indifi.com\/\"><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"91\" src=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/05\/MSME-Loan-3-500x91.jpg\" alt=\"MSME loan for Wholesalers\" class=\"wp-image-5351\" srcset=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/05\/MSME-Loan-3-500x91.jpg 500w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/05\/MSME-Loan-3.jpg 716w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q1_What_is_TReDS_full_form\"><\/span><strong>Q1: What is TReDS full form?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">TReDS stands for Trade Receivables Discounting System. It is an RBI-regulated online marketplace where MSMEs can discount invoices raised against corporate buyers and receive funds from financiers before the invoice due date.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q2_Who_can_use_TReDS_in_India\"><\/span><strong>Q2: Who can use TReDS in India?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Any MSME registered on the Udyam portal that supplies goods or services to a large corporate buyer, public sector undertaking, or government entity can use TReDS. The corporate buyer must also be registered on the relevant TReDS platform. There is no minimum turnover threshold for MSME participation, though eligibility for specific financiers may vary.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q3_Is_TReDS_mandatory_for_large_companies\"><\/span><strong>Q3: Is TReDS mandatory for large companies?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Yes. As per a government notification, all companies with an <a href=\"https:\/\/www.m1xchange.com\/firms-with-rs-250-crore-turnover-rush-to-register-on-treds-as-march-31-deadline-nears\/\">annual turnover above INR 250 crore and all Central Public Sector Enterprises (CPSEs)<\/a> are required to register on at least one TReDS platform. This mandate is intended to ensure that large buyers cannot delay payments to MSMEs indefinitely. Non-compliance may attract scrutiny from the Ministry of MSME.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q4_What_is_the_interest_rate_on_TReDS_financing\"><\/span><strong>Q4: What is the interest rate on TReDS financing?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Discount rates on TReDS platforms typically range from 7% to 10% per annum, according to data from platform operators. Rates are not fixed \u2014 they are determined through competitive bidding by financiers and depend primarily on the credit profile of the corporate buyer, not the MSME supplier. This is significantly lower than the 15% to 24% per annum that many MSMEs pay for traditional working capital loans. Rates are indicative and subject to change based on market conditions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Not on a TReDS platform yet? <\/strong>For MSMEs needing immediate liquidity without TReDS, Indifi offers <a href=\"https:\/\/www.indifi.com\/working-capital-loan\">working capital loans<\/a> with 48-hour disbursal, no collateral required, subject to eligibility. Indifi connects small businesses with a network of NBFC and bank lending partners through one simple application.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.indifi.com\/msme-loan\"><strong>Explore MSME loan options on Indifi \u2192<\/strong><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Disclaimer<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>This content is produced by Indifi Technologies Private Limited for informational purposes only. It does not constitute financial advice, a loan offer, or a guarantee of loan approval. All loans are subject to the lending partner&#8217;s credit assessment, eligibility criteria, and terms and conditions. Interest rates, loan amounts, and tenures are indicative and may vary. Indifi Technologies Private Limited is a loan origination platform and does not provide loans directly. Lending partners are regulated entities as per applicable RBI guidelines.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways What is TReDS Portal? \u00a0TReDS is an online marketplace where MSME suppliers can upload their invoices raised against large corporate buyers or government entities and offer them for discounting. Registered financiers, such as banks and NBFCs, bid competitively to purchase those receivables at a discount. The MSME receives most of the invoice value [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5515,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[141],"tags":[],"class_list":["post-5514","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/5514","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/comments?post=5514"}],"version-history":[{"count":17,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/5514\/revisions"}],"predecessor-version":[{"id":15272,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/5514\/revisions\/15272"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media\/5515"}],"wp:attachment":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media?parent=5514"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/categories?post=5514"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/tags?post=5514"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}