A Trade Receivables Discounting System (TReDS) an Electronic Plateform for Financing of Trade Receivables of MSMES

The Finance Minister, Shri Arun Jaitely presenting the Union Budget 2015-16, here today said that a significant part of the working capital requirement of a MSME arises due to long receivables realization cycles and we are in the process of establishing an electronic Trade Receivables Discounting System (TReDS) financing of trade receivables of MSMEs, from corporate and other buyers, through multiple financiers. This should improve the liquidity in the MSME sector significantly.

Source : Equity Bulls

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