Trade Receivables Discounting System (TReDS)

Benefits

MSMEs can discount their trade receivables (invoices/bills of exchange) raised on buyers through multiple financiers on the TReDS platform at competitive market-determined interest rates. Funds are credited to the MSME seller within 1–2 working days of the financier accepting the bid.

Sign in to see your personalized benefit estimate.

Sign in to see which documents you already have based on your profile.

How to Apply

1. 1

   Choose a TReDS Platform

   Select any one of the five RBI-licensed TReDS platforms: RXIL (rxil.in), M1xchange (m1xchange.com), Invoicemart (invoicemart.in), CREDLIX, or C2TREDS. All are RBI-regulated and interoperable with GSTN.

2. 2

   Register as an MSME Seller

   Visit the chosen platform’s website and complete the MSME seller onboarding form. You will need your Udyam Registration Number, GSTIN, PAN, and bank account details. KYC verification is conducted online.

3. 3

   Upload the Trade Invoice

   After registration, upload the invoice or bill of exchange raised on the corporate buyer or CPSE. Ensure the invoice is GST-compliant and the buyer is also onboarded or mandated to be on TReDS.

4. 4

   Buyer Accepts the Factoring Unit

   The corporate buyer receives a notification on the platform and digitally accepts the invoice, creating a "Factoring Unit" (FU). Buyer acceptance is mandatory before financiers can bid.

5. 5

   Financiers Bid via Reverse Auction

   Once the FU is live, registered financiers (banks and NBFCs) place bids with their offered discount rate. The MSME can accept the lowest (best) bid. The entire bidding process is transparent and competitive.

6. 6

   Receive Early Payment

   Upon accepting the winning bid, the discounted invoice amount is credited directly to the MSME’s registered bank account within 1–2 working days — without waiting for the buyer’s original payment due date.

7. 7

   Buyer Repays the Financier

   On the original invoice due date, the buyer repays the full invoice amount to the winning financier directly. The MSME’s obligation is complete once the early payment is received.