Bank of Maharashtra has partnered with Mynd Solutions Pvt Ltd, to participate on the M1Xchange TReDS platform. TReDS is a digital platform to support MSMEs to get their trade receivables financed at a competitive rate through an auction mechanism where multiple financiers can bid on invoices accepted by PSUs / Corporate Buyers.
In addition to TReDS platform of Receivables Exchange of India Ltd (RXIL) & Invoicemart (A.TREDS Ltd), the bank has on boarded as financier on the TReDS platform of M1Xchange of Mynd Solutions Pvt Ltd.
The main purpose of TReDS platform is to facilitate smooth flow of liquidity in the system and make available the finance at a competitive rate. As soon as the bills are raised by the MSMEs and approved by large corporates on TReDS platform, banks or financiers can bid for them based on the risk rating of large corporates. MSMEs will receive their dues from the banks or financiers without waiting for the credit period agreed with large corporate. The shortening of payment cycle and the smooth flow of liquidity through the platform will ensure that MSMEs do not lose out on business opportunities due to shortage of funds. The cost of funds will be reduced for MSME’s as banks will be bidding basis the risk rating of a corporate.
