Tuesday, June 16, 2020

How TReDS works?

Factoring & Reverse Factoring are two methods of bill discounting on a TReDS platform. Both of these methods are designed to speed up the vendor payment process without disturbing the balance sheet of any stakeholder. 

In Factoring, the Supplier raises the invoice and the Buyer verifies the same. This enables the financiers which are also the invoice factoring company to bid against the verified and approved invoice. Once the supplier accepts the bid, the payment is processed in T+1 days. TReDS gives this flexibility to the Suppliers to choose the best factoring companies on diverse parameters such as transparency, customer confidentiality, factoring rates & fees. 
To read completely and understand more better visit at: https://www.m1xchange.com/howitworks.php

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