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Showing posts from May, 2025

The Role of the TReDS Portal in Supporting India’s MSME Sector

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  The Role of the TReDS Portal in Supporting India’s MSME Sector The Trade Receivables Discounting System (TReDS) is a platform designed to streamline the financing and discounting of trade receivables for Micro, Small, and Medium Enterprises (MSMEs) through a network of multiple financiers. By enabling MSMEs to quickly receive payments on invoices issued to diverse buyers such as corporations, government entities, and public sector undertakings (PSUs), the TReDS platform enhances their cash flow management. In this blog post, the role of the TReDS portal in supporting India’s MSME sector. But first it is important to understand the working capital woes of Indian MSMEs. The risk of late payments frequently paves the way for the expansion of many Indian MSMEs. Consider an MSME that has painstakingly completed an order, paying for labour and raw materials, only to have to wait a long time to receive the money they are due. For many small businesses around the country, this is...

Working Capital Management: A Guide to Better Cash Flow Control

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  Working Capital Management: A Guide to Better Cash Flow Control Corporate finance is one area of finance that focusses on a business organisations’ capital structure and funding sources. One of the core components of corporate finance is working capital, which represents the difference between a company's current assets (cash, inventory, and accounts receivable) and current liabilities (short-term debt and accounts payable). The stability and expansion of a business are contingent upon the efficient working capital management . In order to properly comprehend it, companies must be aware of: Working Capital Cycle The time it takes for a company to turn all of its net working capital—present assets less current liabilities—into cash is known as the working capital cycle . Working Capital Finance Working capital financing is one particular technique used in working capital management. It alludes to the financing alternatives that companies have at their disposal to meet their...