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M1xchange, an exchange dealing in trade receivables discounting system (TReDS), has started transacting with NTPC to address the financing concerns of MSMEs in the power sector.
Launched by outsourcing and consulting firm Mynd Solutions, M1xchange has on-boarded many large corporates, their MSME vendors and financiers (banks - public, private, foreign and NBFCs) to do the financing transactions.
“The use of TReDS is aimed at improving the flow of funds to MSMEs by reducing the realisation cycle of receivables. TReDS allows MSMEs to post their trade receivables on the system and get them financed,” said a press statement issued by M1xchange.
The digital platform of M1xchange came into being in April last year to serve MSMEs, which usually struggle to stay afloat due to paucity of working capital.
TReDS is a regulatory framework put in place by the Reserve Bank of India under the Payment and Settlement Systems Act 2007 to regulate trade receivables between MSMEs, large corporations and financiers.
“The M1xchange platform would provide a reliable tool to our vendors due to its competitive pricing mechanism,” SC Chavady, GM, corporate materials, NTPC, said in the statement.
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