M1xchange onboards SIDBI as financier
M1xchange, one of the three Trade Receivables Discounting System (TReDs) platforms, said it had tied up with Small Industries Development Bank of India (SIDBI), which is engaged in the promotion, financing, and development of Micro, Small, and Medium Enterprises (MSME) as its financier.
M1xchange offers early liquidity to MSMEs within 24 hours through its online bidding platform through end-to-end digital process. “The cost of funding outside the banking system is very high for MSMEs. With this unique proposition offered by M1xchange TReDS, MSME enterprises will be able to utilise TReDS for discounting of receivables from their corporate buyers in which multiple financial institutions like SIDBI can play a big role,” said Sundeep Mohindru, MD & CEO -M1xchnage.
“Corporate buyers, in turn, will be able to procure at better prices. M1xchange is privileged to welcome SIDBI for coming onboard,” he said. “TReDS have become an effective tool for prompt realisation of MSMEs’ receivables and it provides for an effective solution to their working capital requirements,” said Sivasubramanian Ramann, CMD, SIDBI.
“We expect that more and more buyers will join and use TReDS platforms for effecting payments to their MSME suppliers and contribute to resolving the issue of delays in payment of MSME receivables to a larger extent,” he said. “SIDBI being an apex institution for promotion and development of MSMEs, is fully committed towards increasing the flow of credit to MSMEs for their growth,” he added.
Till date, M1xchange said, it had facilitated bill discounting of more than ₹37,000 crore to over 14,000 MSME suppliers spread across 1,400 towns across the country at competitive rate of interest.