TReDS, invoice finance without recourse for MSME sellers TReDS
TReDS platforms authorised by RBI let an MSME sell its unpaid invoices on large buyers to banks and NBFC factors through online bidding, without recourse to the seller.
Last updated on
- Status
- Open
- Run by
- Reserve Bank of India
What you get
- Only MSMEs can be sellers on TReDS
- Finance is without recourse to the seller, so if the buyer does not pay, the financier cannot come back to you
- Several financiers bid on your invoice once the buyer accepts it
- Financiers may insure TReDS deals, but the premium cannot be charged to the seller
- Money is paid only into the seller's own bank account
- Buyers can be companies, government departments, public sector undertakings or any other entity
Who can apply
- Businesses that are already running.
- Micro, small and medium enterprises.
- Must be an MSME under the MSMED Act
- Your buyer must be registered on the same TReDS platform and accept the invoice
How to apply
- Register on one of the RBI authorised TReDS platforms listed in this guide
- Ask your buyer which platform it uses and to accept your invoices there
- Upload the invoice, let the buyer accept it, then choose the best bid
In Kerala, online from anywhere. Register on one of the RBI authorised TReDS platforms.
Where we found this
An independent guide by The Company of Four, not a government website. Schemes change often, so check every detail on the official website before you apply. Links marked ↗ open external websites that we do not run, and we are not responsible for their content. Seen something out of date? Tell us and we will look into it.