M1xchange, a trade receivable discounting platform for MSMEs, has started testing ITFS (international version of TReDs) to enable Indian MSMEs avail liquidity at relatively low rates of 4-9 per cent against their invoices. 

Gift-City regulator International Financial Services Centre Authority (IFSCA) has granted licence to M1 NXT(Mynd IFSCA P LTD) to set up International Trade Finance Services (ITFS) platforms in order to capitalise on the enormous potential for cross-border supply chain trade finance.

With these new ITFS services, at the first stage, Indian MSMEs can avail liquidity (early payment) against invoices after exporting their goods and services to US, Europe, Middle East and Singapore markets, from various financiers on boarded with ITFS (International Trade Finance System). The financiers currently onboarded are from various geographies in US, Singapore middle east and gift city. The registration and KYC process is seamless and friction free.

With the growth of the digital and globalised marketplace, M1NXT will support Indian Exporters with liquidity for international trade transactions through a worldwide network of institutional financiers and Banks that purchase receivables through a real-time marketplace. 

Once fully rolled out, the product is likely to help address a part of the over $17 trillion global trade finance opportunity (source Mckinsey global payments report 2020).

Commenting on the initiative, Jacob Raphael CEO at M1 NXT, said, “With this unique proposition developed by M1 NXT for international trade transactions small export enterprises will be able to utilise M1 NXT for receivables discounting from their international Buyers at market-determined interest rates. Such powerful enablers will lead India to become an export oriented nation” .

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