Three financial institutions have joined forces with Jana Small Finance Bank: RXIL, A.TReDS, and M1xchange. Buyers and suppliers on all TReDS platforms may now take advantage of a number of new discounted opportunities thanks to the new cooperation with Jana Small Finance Bank.
It was decided by RBI to establish the Trade Receivables Discounting System (TReDS) to help MSME suppliers overcome their credit issues by allowing them to discount their invoices and bills of exchange. Due to the TReDS auction procedure, which allows a variety of financiers to bid on bills accepted by both public sector entities (PSUs) and large corporations (CBOs), MSMEs with access to credit are guaranteed prompt payments.
To help small and medium-sized businesses (SMEs) better manage their working capital, TReDS offers discounted receivables at competitive rates, as well as minimal and simple documentation requirements. Businesses, government agencies, and public sector organizations that purchase goods or services will benefit from the platform's ability to reduce procurement costs, improve vendor management, and lower the administrative costs associated with vendor financing, payments, and settlements. The platform.
As the economy recovers from the COVID pandemic, Jana Small Finance Bank is increasing its focus on supply chain financing in order to strengthen its goal of developing a robust and diverse MSME portfolio. Because of this collaboration with all three TReDS platforms, a wide range of MSME loan seekers can now apply for funding.
"MSMEs contribute 30% of India's GDP. Their growth depends on the availability of convenient, collateral-free funding solutions to finance average outstanding receivables of Rs 500,000 crore per year due to the time lag between raising an invoice and receiving payment," said Sumit Aggarwal, Head of MSE, Supply Chain & Financial Institutions at Jana Small Finance Bank. We want to become the go-to solution provider of supply chain finance for MSMEs who want to unlock working capital without having to post collaterals or go through lengthy loan application processes," we said.