Know How M1xchange TReDS Is Making Financiers Transactions SAFE – Smoother, Accurate, Faster & Easier

It has always been our endeavor to continuously improve and simplify the processes to make the M1xchange TReDS platform more user-friendly, understand & address the needs of the participants while meeting all the legal & regulatory requirements. In the last quarter, we have made the following changes, which will surely benefit financiers registered on our platform.

Introducing Buyer Limit Expiry Date

The Financiers normally define a limit for a Corporate which remains valid until it is manually removed. M1xchange has introduced a new feature in which the Financiers can now put an expiry date for a limit against a Corporate. The system automatically makes the limit unavailable on the expiry date and stops the Financiers inputter from placing any more bids, thus preventing excess funding to a corporate.

Setting Buyer limit with Minimum & Maximum interest percent

Earlier, the Financiers Inputter and Authorizer could place a bid at any interest rate against a factoring unit. There was a theoretical possibility of someone mistakenly putting a bid at a wrong interest rate, e.g., by putting a decimal at the wrong place or accidentally removing a decimal point. To mitigate this manual error, which can lead to huge risk, an additional control feature has been added through which a CAD user can define the minimum and maximum interest rate for corporate limits.

Improving transparency with Lowest Bid Rate Display

Earlier, at the time of bidding, the Financiers were not able to find out the right rate at which to bid against a factoring unit, since the rate of the existing bids was not visible. In certain cases, the Financiers had to place multiple bids to be able to reach the lowest bid. The platform now displays the lowest bid rate to the Financiers inputter at the time of placing the bid thereby easing decision-making in bidding and also saving rework effort in bidding.

Preventing clashes by disallowing Bid Ties

Previously, for a factoring unit, different Financiers could place bids at the same interest rate. In such a scenario, many Financiers who had placed the bid at the same rate used to win the bid, and were left at the interest bearer’s discretion. This was a cause of dissatisfaction for the losing Financiers. To curb this issue, the platform will no longer allow bids from two different Financiers at the same rate on the same factoring unit. Also, in case a bid is present on a factoring unit, any subsequent bid, if placed at a lower rate than the lowest bid, will have to be at least 5 basis points below the lowest bid.

Widening accessibility of Buyer and Seller details to CAD users

Before this change, the details of the buyers and sellers including their KYC documents were visible only to the Financiers inputter and authorizer. Now, the details are also made visible to the CAD user of the Financiers. This would assist the CAD user to verify the details of the Buyers and Sellers at the time of allocating limits to them.

Providing Outstanding Exposure under Buyer/Seller Conduct

The Buyer/Seller Conduct section is visible to Financiers inputter, authorizer, and CAD user. While this section has a summary of all the transactions that the respective organization has undertaken on the platform, the outstanding exposure was not visible. This has now been added. This will allow the CAD user to update the limits based on the exposure, and also allow the inputter and authorizer to keep the outstanding exposure in mind while placing a bid.

Boosting transaction confidence with Corporate Repayment Score

In an initiative to provide more comfort and confidence to the Financiers in transacting on M1xchange, we have developed an internal algorithm to show an indicative score for a Corporate on a scale of 100 points basis its repayment history. We have created a page where the Financiers can see the current score of a corporate at the time of bidding.

Simplifying CERSAI charge creation

To relieve the Financiers from the cumbersome process of creating registration charges on CERSAI and save. M1xchange has created a utility for its registered Financiers for generating files with details of all invoices financed on the platform. These files can be uploaded on CERSAI’s bulk upload platform for registration of charges. This new feature will save time and increase operational efficiency.

With these technological advancements and many more to come, we are confident, that Financiers will find transacting on M1xchange much more S.A.F.E. (Smoother, Accurate, Faster and Easier.)