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Why TReDS Is the Future of Invoice Financing in India Being a part of or running an MSME is not for the weak, there are several challenges that they face daily. But there’s one challenge that has been persistent for them for a while now: accessing timely and affordable working capital. Long payment cycles, limited access to formal credit mechanisms and delayed receivables constrain their growth. However, after the introduction of TReDS , things have been much better for MSMEs. By offering a secure, digital, and RBI-regulated route to unlock the cash flow through invoice financing, the narrative of offerings has been changed.   Having ₹11.5 lakh crore worth of invoices being financed through TReDS, the ecosystem has taken a good turn and has transformed into a transparent and inclusive model for MSME finance.   Here's everything one needs to know about why TReDS is the future of invoice financing in India, how businesses can register on the same and why platforms and ...

  How Bill Discounting Helps Improve Cash Flow for Your Business When a business has bills receivable, it sells them to a bank or other financial institution before they mature in order to get quick cash. Bill discounting is the name of this financial tool. A discounted advance against the value of the bill is provided by the financial institution. This discount represents the interest and service charges for the period preceding the bill's maturity. On the date of maturity, the financial institution then collects the full amount from the client who originally issued the bill receivable. It allows businesses to immediately convert their future receivables into working capital. Below are the benefits of bill discounting which show how it can improve cash flow for business: ·   Instant access to working capital : Imagine not having to wait months (30, 60, or even 90+ days) for the customers to pay the businesses. With bill discounting, the businesses can get a big chunk of that...