Invoice Discounting / TReDS Onboarding

Corporate onboarding as a TReDS buyer is mandatory, not optional, for companies above a turnover threshold: Ministry of MSME Notification dated 7 November 2024 requires every company registered under the Companies Act, 2013 with annual turnover exceeding ₹250 crore, and every Central Public Sector Enterprise (CPSE), to register on a Reserve Bank of India-licensed TReDS platform (RXIL, M1xchange, or Invoicemart) — the compliance deadline was 31 March 2025. This lowered the earlier ₹500 crore threshold set by the November 2018 notification.

TReDS itself operates under the Payment and Settlement Systems Act, 2007 (RBI-regulated). Once onboarded, the buyer's obligation is to accept and process invoices uploaded by its MSME sellers on the platform, allowing financiers to bid to discount those receivables without recourse to the seller — this supports MSME sellers' cash flow against the 45-day payment expectation under Section 15 of the MSMED Act, 2006.

Non-compliance risk: failure to onboard by the deadline exposes a covered company to regulatory scrutiny under the MSME Development framework, given the notification's mandatory (not advisory) framing.

We assist with eligibility checks, documentation, platform onboarding, buyer mapping, and process setup for invoice discounting. This helps MSMEs convert approved receivables into working capital through regulated platforms and financing partners.