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  Bill Discounting: A Comprehensive Overview We are all annoyed when our payments are postponed or halted. Now consider what MSMEs would do if they found themselves in a predicament where their payments were delayed or halted. Bill discounting is one strategy that they can employ to address these issues. In this guide, you will be provided detailed information on this discounting: What is the term "billing discounting?" Through the process of this discounting, a business can raise money for its urgent financial requirements by selling its accounts receivable, bills receivable, or trade receivable to a financial institution. In order to grant an advance against those debts, the financial institution can verify the legitimacy of the accounts receivable and the creditworthiness of the business. Who are the Participants in Bill Discounting? This discounting procedure involves three parties: ·        Drawer A drawer is a seller or business th...

The Ultimate Guide to TReDS: A Game Changer A platform called TReDS (Trade Receivable Discounting System) was developed to assist Indian MSMEs and other companies in financing and lowering their trade receivables . Trade receivables meaning is the amounts owed to a business by its customers for goods or services that have been delivered but not yet paid for. This ultimate guide will tell you how TReDS is a game changer. What is TReDS?   An electronic platform called TReDS makes it easier for Micro, Small, and Medium-Sized Enterprises (MSMEs) to finance or discount their trade receivables through a number of different financiers. Corporates and other purchasers, such as government agencies and public sector enterprises (PSUs), may be the source of these receivables. Knowing the advantages of TReDS and how it works is crucial. Let's first examine how it functions. How Does TReDS Work? ·        Invoice uploading : The TReDS platform ...

  Corporates TReDS Onboarding Deadline: How to Complete by March 31, 2025 The Indian government has mandated that all companies registered under the Companies Act, 2013, with a turnover exceeding INR 250 crores, and all Central Public Sector Enterprises (CPSEs) must onboard themselves onto the Trade Receivables Discounting System (TReDS) platforms by March 31, 2025. This deadline signifies a crucial step towards streamlining trade finance for MSMEs and fostering a more inclusive financial ecosystem. This blog post will provide TReDS onboarding tips and checklist. Understanding TReDS platforms TReDS platforms facilitate the discounting of invoices raised by MSMEs against larger corporates. These platforms enable MSMEs to receive faster payments for their goods and services, improving their cash flow. Below are advantages of these platforms, which have been split among their main participants—buyers, sellers, and financiers. Advantages to Sellers Fast Cash Flow: B...

The Ministry of Micro, Small, and Medium Enterprises (MSME) mandates that all Central Public Sector Enterprises (CPSEs) and businesses with an annual turnover exceeding INR 250 crores must register on the Trade Receivables Discounting System ( TReDS ) platform by March 31, 2025. A digital platform called TReDS (Trade Receivable Discounting System ) was created to assist Indian MSMEs and companies in increasing their cash flow by making it easier for them to discount their trade receivables. Businesses may obtain working capital more effectively and transparently owing to this approach, which eventually improves their financial stability. In this context, trade receivable refers to the amount that customers owe a business for goods or services rendered but not yet paid for. In this blog, the TReDS onboarding process step-by-step will be discussed. Understanding How Does TReDS Operate? Uploading of Invoices : The TReDS platform receives invoices from sellers, many of wh...