NEW DELHI: M1Xchange Trade Receivables Discounting System (TReDS) platform has forayed into the aviation sector by bringing on board Airport Authority of India (AAI), Air India and Air India Express.
TReDS helps micro, small and medium enterprises (MSMEs) get their bills discounted at a competitive rate through an auction where multiple registered financiers can participate. The recent permission granted to NBFCs to access the benefits of TReDS platform will add to the number of financiers while large PSUs from different sectors joining in will encourage cash strapped MSMEs to seek the benefits from the digital platform.
The volume growth on M1xchange since its inception across sectors reflects its successful adoption by all the participants – MSME vendors, large corporates and banks,
said Sundeep Mohindru, CEO, M1xchange in a statement.
In a statement, Air India Express Ltd, CEO, Shyam Sundar, said, The TReDS platform provides MSMEs the facility of obtaining quick easy and assured settlement of their invoices. Air India Express which is committed to promoting procurements from MSME is happy to be registered on the TReDS digital platform.
Vinod Hejmadi, Director Finance, Air India Ltd., in a statement, said, At this juncture our relationships with MSMEs across the country must be maintained strongly and the performance and delivery of TReDS will be a game changer.
MSMEs, despite their vastly important role in the Indian economy, continue to face constraints in obtaining adequate finance particularly in their ability to convert trade receivables into liquid funds. The TReDS system allows MSMEs to receive money upfront which enables them to solve their collection-related and working capital issues.