Four banks join Invoicemart TReDS platform to facilitate MSME suppliers

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Four banks join Invoicemart TReDS platform to facilitate MSME suppliers

Four banks join Invoicemart TReDS platform to facilitate MSME suppliers

Industry News
Feb 27,18

Four leading banks - Standard Chartered Bank, Allahabad Bank, Vijaya Bank and Yes Bank, have joined the digital invoice discounting platform Invoicemart - promoted by A. TREDS Ltd (a joint venture between Axis Bank Ltd and B2B e-commerce company Mjunction Services Ltd).

Four banks join Invoicemart TReDS platform to facilitate MSME suppliers

Invoicemart, a TReDS (trade receivable discounting system) platform, connects MSME suppliers (sellers) and their corporate buyers to multiple financiers. The platform allows MSME suppliers to avail finance quickly and at competitive interest rates which in turn helps increase their working capital efficiency without impacting their relationship with buyers. This platform enables discounting of invoices of the MSME sellers raised on large buyers, through a transparent bidding mechanism that ensures financing of receivables at competitive market rates.

Kalyan Basu, CEO & MD, Invoicemart, commented, “'We welcome these prestigious financial intuitions on board and thank them for showing trust in our offering; we assure superior service levels to our new partners. Invoicemart team has in-depth knowledge of supply chain finance, corporate and SME banking.”

Small businesses need quick cash to grow smoothly. However, the growth of MSMEs is currently constrained by the lack of liquid funds. The need of the hour is a solution which lets MSMEs unlock working capital without the hassle of applying for loans. To facilitate this, the Reserve Bank of India (RBI) launched the TReDS (Trade Receivables Discounting System) initiative in 2014. TReDS, an online electronic institutional mechanism, facilitates the financing of trade receivables of MSMEs through multiple financiers. The RBI has allowed three players to launch the TReDS. These are Receivables Exchange of India (RXIL), a joint-venture between National Stock Exchange and SIDBI; A Treds, a joint-venture between Axis Bank and Mjunction Services; and Mynd Solution.

Invoicemart was launched in July 2017 by A.TREDS Ltd, a JV between Axis Bank and Mjunction Services – a 50:50 venture promoted by SAIL and Tata Steel.