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Today Date : Friday, July 12, 2024

M1xchange to offer TN collateral-free working capital to MSMEs

M1xchange to offer TN collateral-free working capital to MSMEs

Nearly 13 lakh MSMEs in the state of Tamil Nadu will be benefitted with the adoption of a collateral-free working capital on M1xchange TReDS platform, India’s first and leading Trade Receivable Discounting System (TReDS).
M1xchange, has on boarded 49 banks and NBFCs and has recently signed a memorandum of understanding with Tamil Nadu government to enable TReDS.“The cost of funding outside the banking system is very high for MSMEs. 

M1xchange offer

With this unique proposition developed by M1xchange TReDS, MSME enterprises will be able to utilise TReDS for receivables discounting from their corporate buyers at market-determined interest rates using an auction method in which multiple financial institutions bid.  Corporate buyers in turn will be able to procure at better prices and manage their inventory adequately,” said a spokesperson from M1xchange.