M1xchange

TReDS (Trade Receivables Exchange Discounting System) is a digital platform that facilitates quick funding access for micro, small and medium enterprises. These MSMEs can get funding for their daily working capital by selling their trade receivables or invoices to financiers or lenders. Trade receivables meaning the amount that a business is due to receive in exchange for the goods and services it has sold to its customers. TReDS platform speeds up the payment flow, guarantees transparency and cuts down on processing time. It also minimises the difficulties caused by late payments, which frequently affect MSMEs' ability to conduct business. It's important for MSME business owners to understand how the TReDS platform works before they use it. What is the TReDS Platform and How Does It Work? By step-by-step process, let's learn how this platform works. ●         Registering on this Platform The very first step to begin with is registering on the TReDs platform, for

Recourse and reverse factoring are two financial tools commonly used by businesses to improve their cash flow. Even though they share the same goal of providing immediate access to funds, they still have various distinctions. However, it is important to know more about these two. Here we will discuss the key differences between recourse and reverse factoring. Recourse Factoring In recourse factoring , the seller remains liable for the debt if the retailer’s customers fail to pay. The factoring business may make efforts to collect the amount on behalf of the seller; however, this is not guaranteed. If the factoring company fails to collect the amount, the seller may be required to repurchase the invoice and collect the debt directly. Therefore, while recourse factoring provides immediate cash, the seller deals with the ultimate risk of non-payment. Reverse Factoring Reverse factoring is a financing technique that involves a third-party financial institution (e.g., bank, fact