Digital transformation and adoption of invoice financing platforms like TReDS has helped MSME vendors to get early payments and bounce back to pre-COVID levels.
MUMBAI: Invoicemart has facilitated financing of MSME invoices of more than $2 billion through its online platform. The RBI licensed market-place is the only TReDS platform to get 11,000 participants (including 10000 MSME vendors) enrolled.
This could be achieved with increased participation from corporates and participation by government entities on the platform. The latter are now routing payments to their MSMEs through the platform.
Digital transformation and adoption of invoice financing platforms like TReDS has helped MSME vendors to get early payments and bounce back to pre-COVID levels. Invoicemart, through its digital invoice discounting solution has taken the benefits of TReDS to MSMEs in 570 cities across India. It has been able to reach MSME vendors through webinars organized by corporates, government entities, planned outreach programs and tie-ups with local trade associations. The platform has worked closely with several government entities to release pending payments to its MSMEs.
The company currently has a customer base of 920 anchor CPSEs/PSUs, corporates, banks and NBFC factors. 10,000 MSMEs who have registered as participants are availing benefits of routing their invoices through TReDS and getting competitive rates.
Major policy changes announced by the government like introduction of new definition for MSMEs, issuance of Udyam Registration Certificate to MSMEs through an online portal, inclusion of traders in definition of MSME and the recent approval of the Factoring Regulation (Amendment) Bill, 2021 allowing around 9000 NBFCs to register as financiers are expected to boost the participation on TReDS. The platform is now expanding its reach and is in talks with various state governments who are keen to help their MSMEs.
The ease of access to invoice financing and the market-place concept is getting popular among the MSME vendors. Invoicemart has seen 790,000 invoices routed through its platform and there is demand for the platform to get more of their buyers to participate on TReDS.
In a statement, Prakash Sankaran, MD & CEO, A. TReDS Ltd said “We attribute this achievement to all our customers – PSUs/corporates, nanks, NBFC and MSMEs and their participation on the platform. We are hoping to set newer benchmarks in the TReDS and fintech space.”