New Delhi, June 3 (UNI) Mynd Solutions, one of India’s leading outsourcing and consulting company, has added new features to its M1xchange to provide better Inflow of Working Capital For Micro, Small and Medium Enterprises (MSMEs) in the light of Goods and Services Tax (GST) regime.
Mr Sundeep Mohindru, Founder-Director & CEO, Mynd Solutions Pvt Ltd, said today that M1xchange was an outcome of RBI’s approval to Mynd Solutions to implement TReDS (Trade Receivables Discounting System). “It allows MSMEs to post their receivables on the online platform and provide them with the option of generating working capital within 2 working days through a transparent bidding model,” Mr Mohindru said.
Talking to UNI, he said that it will also enable the availability of funds to MSME segment at a much lower rate of interest in comparison to the offline market. M1 has already onboarded eight corporate buyers and their suppliers for transacting on exchange. To onboard financiers on the exchange, M1 has also engaged with multiple banks, like – IndusInd Bank, IDFC bank, Kotak Mahindra Bank, ICICI Bank and DBS bank.
Online terminals of the exchange are now operational for corporates, MSME and the bankers to transact on the platform. Charges will be levied per transaction.
Giving the details of M! Exchange, he said that the use of TReDS is aimed at improving the flow of working capital at very competitive interest rates to micro, small and medium enterprises (MSMEs) by reducing the receivables realisation cycles. Banks finance the receivables for MSME suppliers basis the credit rating of their large corporate customers.
Mr Mohindru said, “We have been assigned the responsibility to set up and achieve the objectives of Trade Receivables exchange for the country. RBI has carved out the innovativeness on this exchange of having multiple banks to service large corporate and its suppliers.”
“It’s a programme of multiple banks servicing the financing needs of multiple suppliers of corporates. This has given this platform a new shape of being a market place for Trade receivables financing,” he said.
He added that Exchange has been enabled to comprehensively manage the settlement of transactions that have happened during the day, which means that payments to suppliers by the financiers and collection of amount due from the buyers on due date is enabled by the exchange. As a result Suppliers, Corporate buyers and Financiers get a single point of dealing i.e. the exchange, in this many to many relationship. These unique points are being appreciated by the service providers globally and this will become the future in many other countries.