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M1 For Corporates

M1 For Corporates


buyers, invoice discounting, trade receivables

Corporates, Government Departments, PSU are the other key constituents of the TReDS. The corporates are the buyers who procure goods or services from MSME suppliers. When a corporate buyer deals in any trade with a supplier, the supplier raises an invoice with respect to the goods or services delivered. However, it may so happen that the buyer's payment cycle may not allow for payment of the supplier's receivables at that time. Hence, TReDS proves to be an effective solution to maintain the synergy between both the entities by bringing in the invoice factoring companies, the Financiers, who bid and finance the invoice, and ensures that the supplier gets his payment on time.

When a suppliers uploads an invoice, the buyer logs in to M1 Exchange to approve the same after mandatory verifications. Post buyer's approval, the invoice is converted into Factoring Units and published for bidding by financiers.

The corporates gets benefited tremendously from TReDS as it reduces their working capital requirements through improved DPO. M1 enables buyers to negotiate better terms with supplier while enjoying a more stable supplier base by facilitating their access to competitive financing. What TReDS also does for the corporate buyers is, it enhances their enterprise resource planning by default. This entire transformation cuts processing costs, eliminates discrepancies and optimize the cash flow for smooth operations.

Benefit for Corporates


Optimize the working capital by maintaining or extending days payable

If the buyer has a payment term of 30 days with a Micro Small or Medium Enterprise (MSME) then, on the 30th day, the buyer has the option of opting for Reverse factoring his Invoices via TReDS, by doing this, the buyer gets an extended credit period to make the payment and the Suppliers gets payment on time.

Alternate and efficient funding method for making vendor payments.

By reverse factoring the buyer enables early payment to the vendor without taking any borrowing limits on his books. Here the buyer only needs to provide a confirmation of the trade transaction uploaded by the vendor on the portal. This way the vendor gets funding from the financial institution. The transaction is that of a purchase and sale of receivables between the financial institution and the vendor.

Bring down the cost of goods and services purchased

Interest cost is a major component in the cost of goods and services provided by the vendor. The bidding model and other efficient practices on TReDS brings down the interest cost for the vendors significantly. This in turn lowers the cost of goods and services purchased by the Buyer.

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