How to Complete TReDS Platform Onboarding Before 31st March 2025

The Indian government’s mandate requiring Central Public Sector Enterprises (CPSEs) and businesses with a turnover of INR 250 crores to onboard TReDS platforms by March 31, 2025, marks a crucial step towards streamlining trade finance for MSMEs. This move significantly enhances the accessibility of credit for MSMEs, fostering a more inclusive and efficient financial ecosystem within the Indian economy.

In this blog post, how to complete TReDS Platform onboarding before 31st March 2025 will be discussed.

Below are the TReDS platform registration steps that can help in the onboarding process:

Step 1: Comprehending the TReDS Platforms

The purpose of TReDS platforms is to make it easier for MSMEs to discount their bills to larger businesses. These platforms improve MSMEs’ cash flow by assisting them in obtaining speedier payments for their goods and services.

The main advantages of these platforms are listed below, grouped according to their main users: sellers, and buyers, and financiers.

For Sellers

• Better Cash Flow: Sellers may address short-term financial demands and increase business liquidity by selling their outstanding invoices and swiftly accessing money.
• Competitive Rates: When compared to more conventional financing options, the bidding procedure on TReDS platforms frequently yields lower discount rates.
• No Collateral Needed: Sellers can get money without putting up any collateral, which lowers the possibility of asset confiscation.

For Buyers

• Cost Savings: Competitive bidding among lenders can lead to reduced interest rates and financing costs.
• Enhanced Supplier Relationships: Timely payments to suppliers help strengthen business relationships.
• Streamlined Processes: The digital platform simplifies the invoice discounting process, cutting down on administrative tasks and paperwork.

For Financiers

• Increased Market Reach: Banks are able to reach a wider range of possible customers, especially MSMEs.
• Lower Operational Costs: Automation and digitisation simplify loan distribution and processing, which lowers related costs.
• Decreased Risk: Since the invoice acts as a kind of security, financing supported by validated invoices lowers credit risk.

Step 2: Methods to Complete TReDS Onboarding

Below are the methods that can help in the TReDS onboarding process:

1. Pick a Platform for TReDS
   Select a TReDS platform that has been approved by the RBI, such as Invoicemart, M1xchange, or Receivables Exchange of India Ltd. (RXIL).
2. Get the Necessary Paperwork or Documents Ready
   Depending on the platform selected, document requirements for TReDS registration can differ. Nonetheless, some standard necessary documents are as follows:

• Completed application form and master agreement
• Bank confirmation letter
• Mandate form for debiting the designated bank account (applicable for financiers and buyers)
• KYC documents for the applicant entity, promoters, administrators (admin users), and authorised signatories

1. Finish the Registration Process: Comply with the platform’s onboarding procedures, which often entail filling out online forms, uploading necessary files, and finishing KYC requirements.
2. System Integration: Link the TReDS platform to the company’s ERP or other internal systems to facilitate seamless invoice uploads and data synchronisation.
3. Employee Training: Provide employees with comprehensive training on the TReDS platform, including tasks like uploading invoices, tracking transactions, and reconciling payments.
4. Start Using the Platform: Start utilising the TReDS platform for invoice uploads and discounting to streamline your financial operations.

Here are all the crucial details and pointers companies require to finish the TReDS onboarding procedure in 2025.

Three businesses have been permitted by the Reserve Bank of India (RBI) to set up Trade Receivable Discounting System (TReDS) platforms in 2015. Among these, Mynd Solutions Pvt Ltd, in accordance with the Payment and Settlement System (PSS) Act, introduced the M1xchange platform in 2017. MSMEs nationwide gain a great deal from this platform’s simplification of the invoice and bill of exchange discounting procedure.

The TReDS platform has been empowering MSMEs since its inception by turning their outstanding bills into instant liquidity through a special bidding process that involves a number of banks, including private, nationalised, and international institutions. The process is not only effective but also guarantees access to financing at competitive rates.

Also Read: Why Corporates with turnover 250cr + needs to be on TReDS by 31st March

Micro, small, and medium-sized businesses (MSMEs) are providers in the TReDS ecosystem; banks and NBFCs are financiers, and big organisations like PSUs and government agencies are purchasers. M1xchange uses an open bidding procedure with many lenders to provide supply chain finance for MSMEs at reasonable rates. The MSME supplier receives finance through M1xchange “without recourse” in accordance with RBI norms. The use of cutting-edge technology by M1xchange guarantees the legitimacy of the underlying transactions.

Conclusion

Businesses have an opportunity to promote a more efficient and inclusive trade finance ecosystem by meeting the March 31, 2025, deadline for corporate onboarding onto TReDS systems. Businesses may attain compliance, improve their financial performance, and fortify their ties with MSMEs by proactively completing the onboarding process. This shows that there are benefits of joining TReDS in 2025 to these businesses.

Due to this, it is imperative that all Central Public Sector Enterprises (CPSEs) and businesses with a turnover of INR 250 crores need to have TReDS 2025 deadline awareness.

M1xchange, a TReDS platform approved by the RBI under the PSS Act, was introduced in 2017 by Mynd Solutions Pvt Ltd. By making invoice discounting easier, it helps MSMEs turn receivables into cash more effectively. M1xchange offers cost-effective financing to MSMEs through a competitive bidding procedure that involves many institutions. The platform reduces risk for MSMEs by specialising in “without recourse” lending. M1xchange guarantees the legitimacy of every transaction by utilising cutting-edge technologies. Key players in the ecosystem include financial institutions acting as lenders, major corporations acting as buyers, and MSMEs acting as suppliers.