M1xchange

  Fa ctoring Finance Explained: A Guide for Business Owners A cash flow that is consistent is essential for stability and success in the rapidly evolving business environment. Clients who take lots of time to pay can pose serious problems that hinder growth and interfere with day-to-day operations of businesses. Businesses that are particularly negatively impacted by it are micro, small and medium enterprises . Factoring finance is one of the effective methods of converting past-due invoices into immediate operating capital. Understanding what is corporate finance is essential before talking about it. Corporate finance is the study of how companies manage their capital structure, accounting, investment decisions, and funding sources. One of the integral components of corporate finance is factoring finance. In this guide, business owners will learn about factoring finance. Businesses can tap into a financial strategy called factoring to quickly access cash by selling their a...

How to Register on the TReDS Portal: Step-by-Step Instructions To overcome major obstacles in traditional trade financing, especially for micro, small and medium enterprises (MSMEs), a bill or invoice discounting platform . The RBI launched the TReDS (Trade Receivables Discounting System), a digital bill discounting platform, to help micro, small, and medium-sized businesses (MSMEs) finance their trade receivables. In essence, it's an online marketplace where MSME sellers can submit invoices that have been raised against corporate buyers and use an auction mechanism to get them discounted by a number of financiers (banks, NBFCs). To register on the TReDS Porta, businesses need to follow the below steps: Step 1: Access the TReDS Portal ·        Navigate to the website : Businesses need to open their preferred web browser and go to the official websites of the TReDS platforms, including M1xchange (which will be discussed later). ·     ...

  Common Mistakes in Working Capital Management & How to Avoid Them One branch of finance that focuses on the capital structure and funding sources of business organisations is corporate finance. Working capital, which is the difference between a company's current assets (cash, inventory, and accounts receivable) and current liabilities (short-term debt and accounts payable), is one of the fundamental elements of corporate finance. Due to these reasons, effective working capital management is essential to a company's stability and growth. To fully understand it, businesses need to know: Working Capital Cycle The working capital cycle is the amount of time it takes for a business to convert all of its net working capital—present assets fewer current liabilities—into cash. Working Capital Finance One specific method in working capital management is working capital finance . It refers to the financing options available to businesses in order to cover their short-term...

Invoice Discounting vs. Bill Discounting: Know the Difference When businesses are having cash flow problems, they often turn to financial solutions like invoice and bill discounting . These methods provide quick access to funds stored in unpaid bills. But how do businesses pick the one that best suits their requirements? Understanding the difference between these two can help them make an informed choice. This blog post will help businesses to gain clarity about these two solutions. Bill Discounting Bill discounting is a financial transaction where a business, holding bills receivable (formal written promises of payment from customers on a future date), sells these bills to a bank or financial institution before their maturity date to receive immediate cash. The financial institution provides an advance against the bill's value but at a discounted rate. This discount represents the interest and service charges for the period until the bill's maturity. On the maturity date,...