How to Register on the TReDS Portal: Step-by-Step Instructions

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).

·       Locate the registration/sign up button: Look for prominent buttons or links such as "Register," "Sign Up," "New User," or "Enroll Now." These are usually located on the homepage or in the navigation menu.

Step 2: Start the Registration Procedure by Entering Basic Information

Enter basic information that will be requested on the first registration form. Typically, this comprises

·       Companies Name (as stated in the official registration documents).

·       Constitution of company (such as a private limited company, partnership, or proprietorship).

·       Email address and mobile number.

·       The Permanent Account Number (PAN)

·       Registered Address and other business locations (if applicable).

·       Industry or sector of operation.

·       GST Identification Number (GSTIN).

·       Name, designation, PAN, date of birth, and contact details of directors, partners, or the proprietor.

Step 3: Input Banking Details

·       Business details: Carefully enter official business bank account details where transaction funds will be credited or debited. This includes:

o   Bank Name and Branch

o   Account Number

o   IFSC Code

·       Upload cancelled cheque: Businesses will be required to upload a scanned copy or photograph of a cancelled cheque from the bank account they provided for verification.

Step 4: Upload Required Documents (KYC and Business Proof):

·       Section for uploading documents: The platform will have a specific area where businesses can upload the documents they created during the pre-registration stage. Scanned copies of PAN card, GST certificate, proof of business registration, KYC documents for the promoters and the entity, and possibly financial statements or letters of authorisation are all included in this.

·       File Format and size: Take special note of the document's designated file formats (such as PDF and JPG) and size restrictions.

Step 5: Review and Submit Application

·       Check all information: To ensure accuracy, carefully check all of the data that have been entered and the documents that were uploaded before submitting. The verification process may be delayed as a result of any mistakes or inconsistencies.

·       Accept terms and conditions: Businesses will probably need to read and agree to the platform's privacy policy and terms and conditions.

·       Submit application: Businesses submit applications to the TReDS platform for verification by clicking the "Submit," "Register," or a comparable button.

Step 6: Verification and Approval Process

·       Platform review: The submitted data and documents will be examined by the TReDS platform team. Internal checks and possibly external database verification may be part of this process.

·       Communication: Usually, businesses will receive updates on the status of the application via email and/or SMS. Keep an eye on registered contact information.

·       Possibility of additional information: If there are any inconsistencies or missing details, the platform may occasionally ask for more information or clarification. Answer such requests as soon as possible.

Step 7: Agreement and Onboarding Completion

·       Master agreement: Upon approval of the application, business owners may be required to digitally sign a master agreement or other onboarding documents that outline the conditions of the TReDS platform participation.

·       Final onboarding steps: To finish the onboarding, businesses may need to link their account with their current accounting or ERP systems (if applicable) or set up digital signatures for transactions.

·       Activation of account: TReDS account of businesses will be activated after all procedures are finished, allowing them to use the platform as a financier or buyer or to start discounting invoices.

So here are the TReDS registration steps. Now it’s time to discuss M1xchange.

Thanks to M1xchange, a digital marketplace approved by the RBI, MSMEs can now discount invoices and bills of exchange nationwide through banks and NBFCs. M1xchange was established by Mynd Solutions Pvt Ltd in accordance with the PSS Act of 2007 and was one of three companies to obtain RBI "in-principle" clearance on November 24, 2015. On April 7, 2017, it was introduced. It meets MSME financing needs by allowing them to convert trade receivables into liquid funds without recourse through a competitive bidding process with numerous banks.

Conclusion

TReDS full form is Trade Receivables Discounting System, is a well-known platform. This platform is an online digital marketplace that has been approved by the Reserve Bank of India (RBI) and is intended to help micro, small and medium enterprises (MSMEs) finance and discount their trade receivables. MSMEs are aware of this platform, which can help them avoid the challenges that invoice factoring may present. In this blog post, it has been discussed how to register on the TReDS portal.

Through banks and NBFCs, MSMEs may now discount invoices and bills of exchange nationally thanks to M1xchange, a digital marketplace that has been authorised by the RBI. On November 24, 2015, M1xchange, one of three businesses to receive RBI "in-principle" clearance, was founded by Mynd Solutions Pvt Ltd in compliance with the PSS Act of 2007. It was first released on April 7, 2017. By enabling them to turn trade receivables into liquid money through a competitive bidding procedure with many banks, it satisfies MSME financing needs.