Trade Receivables e-Discounting System – (TReDS)

TReDS is an electronic platform for facilitating the financing / discounting of trade receivables of Micro, Small and Medium Enterprises (MSMEs) through multiple financiers. It facilitates the discounting of both invoices as well as bills of exchange. The three direct participants in the system are the SME (sellers), Corporate Entities (buyers) and the Financiers.

Features

SALIENT FEATURES OF TREDS

Digital Transactions
Paperless settlements
No Collateral Required
Fastrack Payments
One stop platform for Sellers, Buyers and Financiers
MSMEs can avail competitive discount rates through bidding
Seamless Data Flow

PLATFORMS FOR INVOICE DISCOUNTING

Esaf Small Finance Bank is the first SFB to be active in all three platforms.

Receivables Exchange of India Ltd (RXIL)
Mynd Solutions Pvt Ltd (M1XCHANGE)
A.TReDS Ltd (INVOICEMART)

INVOICE DISCOUNTING AMOUNT

Rs 20000 – Rs 2 Crores

INVOICE DISCOUNTING TENURE

Upto 180 days ( 6 months)

INTEREST RATE

11.65 – 12.90% (The interest rates are subject to Repo rate changes)

WHO CAN REGISTER IN TREDS?

Corporates, Government Departments, PSUs and any other MSME can participate as buyers in TReDS.

RBI GUIDELINES ON TReDS (PDF DOCUMENT ATTACHED)

Timelines for conveying Credit decisions in Trade Receivables e-Discounting System – (TReDS)

Corporate Buyer Approval	3 - 4 weeks
Bid Acceptance	Same Day
Loan Disbursement	Next day
Conditions :
"The timelines start from the date of receipt of complete documents from the Corporate (Buyer).The time taken by the Corporate for submitting documents and / or for furnishing information sought by the Bank will not be taken into account for the purpose of timelines indicated above".
"All timeline counts will be on the basis of full working days. Wherever there is a need for verification etc. with various authorities/ Govt. bodies across one or more centers, a minimum of 15 additional working days will be applicable. We shall endeavour, at all times, to deliver within the indicated timelines, barring in situations and circumstances that are beyond the control of the Bank."

INTEREST RATE