How to registered on the TReDS platform which is set up by RBI?

TReDS is an institutional component set up so as to encourage the exchange receivable financing of MSMEs from corporate purchasers through various lenders. 

Invoice discounting on TReDS includes three members MSME Supplier, Corporate Buyer and Financier. The invoice is transferred by either purchaser or provider relying upon the technique for discounting and is endorsed by the other party. When the invoice is affirmed the lenders on the stage begin to offer on the invoice. The provider acknowledges the offer and the limited sum is credited in its record in T+1 day, where T is the day of acknowledgment. 

M1xchangeTReDS platform presents to you the least complex receivables financing option that doesn't require any guarantee or security in any structure. The value-based documentation under TReDS is paperless and peaceful for the providers.

Sources: With 28 banks and NBFCs on board, #1 TReDS platform M1xchange financed Rs 3,000 Cr worth MSME invoices in 2 years 

Participant on TReDS platform

Participants	Eligibility
Sellers	MSME entities as per the definition of the Micro, Small and Medium Enterprises Development Act, 2006 (“MSMED Act”)
Buyers	Corporates including companies and other buyers including Government Departments and Public Sector Undertakings and such other entities as may be permitted by the Reserve Bank of India (RBI)
Financiers	Banks, NBFC Factors, Financial Institutions and such other institutions as may be permitted by RBI from time to time

Eligibility criterion for MSMEs to join the TReDS platform

The eligibility criteria for MSME enterprises to join the TReDS platform as Sellers are given below:

OLD Classification for MSME 

	Manufacturing (Investment in Plant and Machinery)	Service Sector (Investment in Equipment)
Micro	< Rs. 25 Lakh	< 10 Lakh
Small	> Rs. 25 Lakh but < Rs. 5 Crore	>10 Lakh but < Rs. 2 Crore
Medium	> Rs. 5 Crore but < Rs. 10 Crore	> Rs. 2 Crore but < Rs. 5 Crore

Revised Classification of MSMe

	Micro	Small	Medium
Manufacturing and Services	Investment < 1 Cr Rs & turnover <5 Crore	Investment < 10 Cr Rs & turnover <50 Crore	Investment < 50 Cr Rs & turnover <250 Crore

Factoring and Reverse Factoring Process

Factoring and reverse factoring are financing options alternatives relying on which you select. 

In the event of Factoring, the Seller starts the way toward financing of exchange receivables and by and large bears in the intrigue or financing cost. 

If there should arise an occurrence of Reverse Factoring, the Buyer starts the way toward financing of exchange receivables of Sellers. The Buyer could possibly bear the intrigue or financing cost as might be concurred between the Buyer and Seller.

Process of Registeration on M1Xchange for TReDS

The applicants need to complete the following one time process to register on TReDS platform.