More Buyers Could Soon Join TReDS as a Result of New Initiative

Micro, small and medium-sized enterprises could have more options for increasing their working capital. 

A new initiative should increase the opportunity for India’s micro, small and medium-sized enterprises (MSMEs) to turn their trade receivables into cash. 

As part of the new Union Budget for 2024-25, policymakers would reduce the turnover threshold by 50% for mandatory buyer onboarding on Trade Receivables Discounting System (TReDS) platforms. 

Now, any entity with a turnover exceeding ₹250 crores would be required to register on a TReDS platform. This mandate presents a golden opportunity for MSMEs to benefit from improved cash flows and reduced financing costs.

The government estimates that 22 more Central Public Service Enterprises and 7,000 other companies would be required to join TReDS. 

“We are dedicated to solving the challenges MSMEs face in every country,” said C2FO’s Country Head in India, Basant Kaur. “The nearly 200,000 suppliers currently on our network in India know that when they partner with C2FO, they are working with a recognized global leader dedicated to creating opportunity for businesses. With the provision of liquidity through C2treds and C2FO, businesses, especially MSMEs, will support and create thousands of jobs that are necessary for countries like India to continue on their journey of rapid economic growth.”

This policy was one of several initiatives announced by India’s finance minister, Smt. Nirmala Sitharaman. The new rules will assist the growth of MSMEs by increasing their access to capital. 

C2FO is committed to supporting MSMEs through our RBI-approved TReDS platform, C2Treds. With C2Treds, C2FO became the first US-based fintech to join TReDS, and it was the first platform of scale to offer both Early Pay and TReDS benefits to MSMEs in India. 

 To learn more about C2Treds and how it works, please visit the website. If you prefer to get started with C2treds immediately, you can contact us at [email protected] or call our toll-free number at 1-800-309-1192.