Register on TReDS Before March 31, 2025 – Steps for Corporate Onboarding Successfully

 Register onTReDS Before March 31, 2025 – Steps for Corporate Onboarding Successfully

With the March 31, 2025, deadline for TReDS onboarding approaching, businesses must ensure they are compliant to avoid potential penalties and disruptions.

TReDS is an online platform whose main function is to enable Micro, Small, and Medium Enterprises (MSMEs) to sell their unpaid invoices (referred to as money owed to them by customers) to banks and financial institutions.

This blog post outlines the essential steps for corporate entities to successfully complete TReDS onboarding before the March 31, 2025 deadline.

Here are the steps for the TReDS platform onboarding checklist:

1. Understanding This Platform

How it works?

The following points will give insight on how this platform works:

• MSMEs upload their invoices onto the TReDS platform.  
• Banks and other financial institutions on the platform can then "bid" on these invoices, offering to lend money against them at a certain discount rate.  
• MSMEs can then choose the offer with the most favourable terms.

Benefits of Joining TReDS in 2025:

The below points will tell the businesses about the benefits of joining TReDS in 2025:

• Cost Reduction: Competitive bidding among lenders on the TReDS platform can result in lower interest rates and financing expenses for buyers.
• Better Business Relationships: Timely payments to suppliers, facilitated by TReDS, foster stronger and more collaborative business relationships.
• Smooth Operations: The digital nature of the TReDS platform makes the invoice discounting process simpler, decreasing paperwork and administrative burdens for buyers.

2. Platform Selection

Research: Research and compare different TReDS platform available in India (e.g., M1xchange, etc).

Key Considerations:

• RBI Approval: A platform's authorisation and regulation by the Reserve Bank of India should be confirmed.
• Turnaround Time: Choose an invoice discounting platform that has a quick response time to reduce money receipt delays.
• Cost Structure: Analyse each platform's cost structure or schedule, taking note of transaction costs, upkeep costs, and any other relevant expenses.
• Security Features: A platform with reliable security features should be given priority in order to safeguard private financial information.
• Customer Support: Analyse each platform's customer service in terms of timeliness and quality.

3. Document Preparation

• Company Registration Documents: Certificate of Incorporation, Memorandum and Articles of Association.
• Bank Details: Bank statements, bank mandates for debiting accounts.
• KYC Documents: KYC documents of authorised signatories and key personnel.
• GST Registration Certificate: Proof of GST registration.
• Other Relevant Documents: Any other documents as specified by the chosen TReDS platform.

4. Platform Registration

• Create an Account: Register on the selected TReDS platform by creating an account.
• Upload Documents: Upload all required documents as per the platform's instructions.
• Complete KYC Verification: Undergo the Know Your Customer (KYC) verification process as required by the platform.
• Account Activation: Once the registration process is complete and all verifications are successful, the account will be activated.

5. System Integration:

Businesses should integrate the TReDS platform with their existing system to streamline invoice uploading, data synchronisation, and payment reconciliation. This can significantly improve efficiency and reduce manual effort.

6. Employee Training:

• Train Relevant Personnel: Train employees who will be responsible for using this platform on its functionalities, including invoice uploading, tracking payments, and resolving any issues.
• Ensure Proper Understanding: Ensure all relevant employees have a clear understanding of the TReDS platform and its processes to maximise its benefits.

These are steps that can help in the onboarding process. Now, its time businesses learn about M1Xchange, one of the TReDS platforms.

In 2015, the Reserve Bank of India (RBI) authorised the establishment of Trade Receivables Discounting System (TReDS) platforms. In 2017, Mynd Solutions Pvt. Ltd. launched M1xchange, a TReDS platform operating under the guidelines of the Payment and Settlement System (PSS) Act.

M1xchange empowers MSMEs across India by facilitating the discounting of invoices and bills of exchange. Since its inception, it has provided instant liquidity to MSMEs by enabling them to convert outstanding receivables into cash. This is achieved through a competitive bidding process involving a diverse pool of lenders, including international, private, and nationalised banks. This process not only accelerates cash flow but also ensures competitive financing rates for MSMEs.

Key Participants in this TReDS Platform:

• MSMEs
• Large Corporates, PSUs, and Government Departments
• Banks and NBFCs

M1xchange utilises cutting-edge technology to ensure the authenticity and validity of all transactions.

Conclusion

In this blog post it has been discussed about importance TReDS Registration Deadline March 31, 2025. Here, businesses have learned about the working and benefits of this platform. Most importantly, businesses now know about the steps for TReDS onboarding.

The RBI granted “in-principle” approval to three companies in 2015. One of the companies was Mynd Solutions Pvt. Ltd. In 2017, this company introduced M1xchange, a platform that enables invoice discounting for MSMEs. Through a competitive bidding procedure with a variety of lenders, M1xchange offers MSMEs immediate funding while guaranteeing reasonable loan rates. MSMEs (suppliers), big corporations (buyers), and banks/NBFCs (financiers) are important players. Modern technology is used by M1xchange to guarantee the authenticity and validity of transactions.