M1xchange

  How Bill Discounting Helps Improve Cash Flow for Your Business When a business has bills receivable, it sells them to a bank or other financial institution before they mature in order to get quick cash. Bill discounting is the name of this financial tool. A discounted advance against the value of the bill is provided by the financial institution. This discount represents the interest and service charges for the period preceding the bill's maturity. On the date of maturity, the financial institution then collects the full amount from the client who originally issued the bill receivable. It allows businesses to immediately convert their future receivables into working capital. Below are the benefits of bill discounting which show how it can improve cash flow for business: ·   Instant access to working capital : Imagine not having to wait months (30, 60, or even 90+ days) for the customers to pay the businesses. With bill discounting, the businesses can get a big chunk of that...

Working capital management trends every business must know Managing money is key. Especially when you are running a business. One area that plays a huge role in this? Working capital. Let us break it down. Working capital is the money you business uses for day-to-day tasks. Like paying staff. Buying raw materials. Keeping the lights on. But how you manage it has changed. A lot. New trends are shaping how companies think about money. Let us explore the latest working capital management trends that every business must know in 2025. First, a quick recap: What is working capital? Working capital is your current assets minus your current liabilities. Still confused? It is the cash you have available after covering short-term debts. In-short, it is the money that keeps your business running daily. Managing this well keeps your business healthy. Mess it up and you might face cash shortage or delayed payments. Trend 1: Digital tools are taking over Spreadsheets are not enough anymore. More com...

What Is Factoring Finance? A Complete Guide for Businesses Cash flow gaps affect businesses of all sizes. Startups often wait for their first big payments while expenses pile up. Established companies expanding globally face the same problem. Long payment cycles stretch to 30, 60, or even 90 days. During this time, operational costs continue. Vendors expect timely payments. Salaries and overheads cannot wait. Growth plans slow down because invoices remain unpaid.  Factoring finance provides a practical solution. It converts unpaid invoices into immediate working capital. Businesses can stay agile and meet obligations without waiting for slow receivables. This approach keeps supply chains intact and allows companies to invest in growth even when payments are delayed.  What Is Factoring Finance? Factoring finance is a form of receivables funding. It involves selling invoices to a financial institution called a factor. The factor pays most of the invoice value upfront. Typically...

Invoice Financing vs Factoring: What’s the Difference? Delayed payments are a common problem. Businesses of every size face this challenge. A manufacturer might wait months for bulk payments. A service provider might struggle with 60-day credit terms. These unpaid invoices put pressure on cash flow . Growth slows down when money is stuck. To solve this, businesses use receivable-based solutions . Invoice financing and factoring are the most common tools. Both unlock money tied up in invoices. Both improve working capital. But they work in very different ways. Choosing the right one depends on customer relationships, financial planning, and business goals. What Is Invoice Financing? Invoice financing is a loan against unpaid invoices. Businesses submit invoices to a financing partner. The lender advances most of the invoice value. Usually, 80–90% is released. Once the customer pays, the business clears the loan with fees. In this model, the business keeps control of collections....

How to Choose the Right Bill Discounting Platform in 2025 For micro, small and medium enterprises (MSMEs), accessing working capital promptly is a top priority, especially in such a financial landscape. Traditional lending avenues might hinder their process here, as they’re often slow, document-heavy and dependent on collateral. This is where bill discounting and invoice discounting platforms can be resourceful, they offer efficient, digital alternatives to unlock liquidity using unpaid invoices.    Plus, being in such an evolving landscape, businesses must choose the right platform/partner for discounting bills of exchange or invoices. And with the rise of multiple fintech players and digital marketers in the industry, MSMEs must evaluate keenly, not just the rates and processes, but also security, compliance, and ecosystem support.    Here’s a comprehensive guide to help you choose the right bill discounting or invoice discounting platform that aligns with your bus...

Top Benefits of Registering on a TReDS Platform in India Micro, Small, and Medium Enterprises (MSMEs) are the enterprises that mainly form the backbone of India’s economy. However, even when they make a significant contribution to employment and the country’s GDP, they face a constant challenge, which is timely access to working capital. The Trade Receivables Discounting System (TReDS) was introduced by the Reserve Bank of India (RBI) to address this particular issue.  TReDS is an institutional mechanism for financing trade receivables of MSMEs from corporate buyers through invoice discounting. Among the three TReDS platforms that are approved by the RBI, M1xchange, which is set up by Mynd Solutions Pvt Ltd, has emerged as a trusted and efficient digital marketplace for TReDS bill discounting .  So, what are the benefits of registering on a TReDS platform in India? Let’s find out, and let’s also uncover why M1xchange is an ideal choice for MSMEs, buyers, and financiers alike....