Invoice Discounting and Factoring (TReDS & Off‑Platform)
Unlock cash tied in receivables via RBI‑regulated TReDS or bilateral factoring - faster, transparent, and largely without recourse on TReDS
Quick Stats
About Invoice Finance
Invoice financing converts approved receivables into immediate liquidity via discounting on TReDS or through bilateral/off‑platform factoring with banks/NBFCs. TReDS standardizes bidding, documentation, and settlement in a transparent, RBI‑regulated marketplace. [12][11]
On TReDS, financiers bid primarily on buyer credit; transactions are typically without recourse to MSME sellers, and settlements are digital and time‑bound. Off‑platform factoring follows the Factoring Regulation Act with assignment/notification norms and can be with or without recourse as agreed. [9][13]
Government has widened access - mandating large corporates to register on TReDS and amending the Factoring Act to expand who can factor and streamline registry filings - improving MSME cash cycles. [9][7]
RBI‑Regulated TReDS
Electronic auction of MSME invoices on corporate/government buyers; multi‑financier bidding and assured process timelines.
Without Recourse (TReDS)
Discounting on TReDS is generally without recourse to MSMEs; pricing linked to buyer credit, improving rates vs bilateral deals.
Wider Factoring
Amended Act expands NBFC participation and eases assignment/registry, enabling off‑platform factoring for broader use cases.
Scale & Adoption
Leading platforms have crossed lakh‑crore milestones, reflecting rapid adoption by MSMEs and corporates.
Success Stories
"TReDS discounting against a PSU buyer cut DSO from 75 to 10 days and stabilized working capital."
Ravi Auto Parts
Auto Components
Funded: ₹1.2 Crore
"Multi‑bank bidding on TReDS improved rate discovery vs bilateral factoring."
GreenChem Pvt Ltd
Chemicals
Funded: ₹3.5 Crore
"Bilateral factoring for SME buyers filled gaps where TReDS onboarding was pending."
Swift Logistics
3PL Services
Funded: ₹80 Lakhs
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