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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