New TReDS Mandate Expands MSMEs’ Access to Capital

Learn how C2treds can help your business stay compliant and unlock working capital benefits. 

The Ministry of MSME has issued a landmark directive requiring all Central Public Sector Enterprises (CPSEs) and corporations with annual revenues above ₹250 crores to register on a Trade Receivables Discounting System (TReDS) platform by March 31, 2025. This initiative, which builds on measures announced in the Union Budget 2024-25, is designed to address liquidity challenges faced by MSMEs and enhance their access to affordable working capital solutions.

How This Benefits MSMEs

This mandate will significantly expand buyers’ participation on TReDS platforms, providing MSMEs with a broader and more competitive marketplace for discounting their invoices.

Key Advantages for MSMEs:

1. Quicker Access to Cash: TReDS allows MSMEs to quickly convert trade receivables into cash, reducing payment delays and improving cash flow.
2. Cost-Effective Financing: MSMEs can access competitive discounting rates on TReDS, offering a more economical alternative to traditional credit.
3. Business Expansion: With timely cash flow, MSMEs can reinvest in their operations, expand their capacity, and strengthen their supply chains.

The Growing TReDS Ecosystem

The mandate anticipates onboarding 22 more CPSEs and approximately 7,000 additional corporates, creating a robust ecosystem for MSMEs to benefit from enhanced working capital availability. This aligns with the government’s vision of a more formalized and inclusive financial framework for small businesses in India.

C2FO’s Vision for Working Capital in India

C2FO’s C2treds is a key pillar of C2FO’s nationwide working capital platforms initiative. As the first platform in India to combine dynamic discounting and TReDS capabilities, C2treds plays a transformative role in addressing the financial needs of MSMEs.

• Comprehensive Solutions: C2treds supports buyers and suppliers with streamlined, automated processes to facilitate early payments and invoice discounting.
• Proven Impact: Over 120+ large buyers and 200,000+ suppliers, a large portion of them being MSMEs, present in C2FO’s network in India are set to benefit from C2treds, who can foster stronger supply chains and achieve real financial value.
• Strategic Partnerships: The platform connects suppliers, buyers, and financiers, making it a vital part of India’s evolving financial ecosystem.

Ensuring Compliance with the Mandate

For corporates and CPSEs, onboarding a TReDS platform is not only an opportunity but also a legal requirement. Failing to comply by the March 31, 2025 deadline could lead to penalties or disruptions in operations. Registering with a TReDS platform like C2treds ensures compliance while enabling timely supplier payments and strengthening supply chain relationships.

Get Started with C2treds Today

Register with C2treds to make compliance seamless and unlock working capital benefits for your business.

Contact us to begin your TReDS journey:

• Email: [email protected]
• Toll-Free Number: 1800-309-1192

Be compliant. Support MSMEs. Strengthen your supply chain with C2treds.