Everything You Need to Know About Corporates TReDS Onboarding Before the March 31, 2025 Deadline

By Vibha
Posted On March 4, 2025

The Indian business ecosystem is going through tectonic shifts. In this transformation, financial regulations are ensuring that cash flow remains uninterrupted for Micro, Small, and Medium Enterprises (MSMEs). The latest regulation mandated by the Reserve Bank of India (RBI), requires corporates to register on a Trade Receivables Discounting System (TReDS) platform by March 31, 2025. This latest mandate will strengthen the MSME sector while offering corporates a better structured way to manage their trade payables.

What Is TReDS And Why Should Corporates Care?

TReDS, a digital platform simplifies the financing of trade receivables for MSMEs. It enables them to sell their invoices to banks and financial institutions at competitive rates. This ensures that MSMEs receive timely payments, while financiers make profit on their investment in a short time and corporates benefit from automated, and transparent systems for managing their outstanding payables.

With the March 31, 2025 deadline fast approaching, corporates must act now to avoid last-minute roadblocks.

Guide For Corporates On TReDS Onboarding

Step 1: Choose An Approved TReDS Platform

RBI has authorised a couple of TReDS platforms. One of them is DTX. DTX offers a simple, fast and easy to use UI/UX. Check out about DTX (hyperlink)

Step 2: Register On The TReDS Portal

On a TReDS portal like DTX, corporate buyers have to provide basic business details, including:

  • Legal entity name and registration details
  • PAN and GST identification numbers
  • Official contact details
  • Bank account information

Step 3: Submit Documentation

After giving all the necessary details, corporates need to upload the following:

  • Certificate of Incorporation
  • Board resolution authorising participation in TReDS
  • KYC details of authorised personnel
  • Recent financial statements

Step 4: Verification And Approval

After document submission, they are reviewed and go for compliance checks. Once these documents are verified, registration on TReDS portal is approved. This process typically takes a few business days, depending on the submitted documents.

Step 5: Start Approving MSME Invoices

Once onboarded, corporates have to approve invoices submitted by their MSME sellers, allowing banks, NBFCs and financiers to finance them as per their needs.

Key Benefits Of TReDS For Corporates And Financiers

Onboarding onto a TReDS platform is regulatory compliance. It creates a win-win situation for all stakeholders, buyers, MSMEs, and financiers by improving cash flow efficiency and financial stability.

For MSMEs

  • Access to funds: Sellers get immediate working capital by selling their invoices.
  • Lower financial burden: No collateral or additional debt, as factoring is based on unpaid invoices.
  • Regulatory protection: TReDS platforms operate under RBI guidelines, ensuring security, transparency, and fair practices.
  • Faster approvals: Digital processes reduce paperwork and speed up financing.

For Corporates:

  • Better relationships – Timely payments result in better trust and working relationship with MSME sellers.
  • Optimised cash flow – Invoice discounting enables better working capital management, reducing the burden of short-term liabilities.
  • Cost savings – MSMEs offer competitive pricing on improved liquidity, leading to cost efficiencies for corporate buyers.
  • Operational efficiency – Digital platform reduces administrative workload and streamlines payment cycles.

For Financiers:

  • Get good leads – TReDS gives financiers a steady flow of low-risk and verified invoices from creditworthy corporate buyers.
  • Investment opportunities – Financiers earn competitive returns by financing MSME invoices at discounted rates.
  • Portfolio diversification – Getting a wide range of MSME receivables reduces risk concentration and enhances financial stability.
  • Transparent transactions – Being a digital platform, TReDS ensures transparency, reducing credit and operational risks for financiers.

Through TReDS, corporates can strengthen their supply chains, while financiers gain access to secure, high-yield investment opportunities creating a win-win ecosystem for all stakeholders.

Overcoming Common Challenges In TReDS Onboarding

The whole onboarding process is deliberately kept short, easy and quick. But, corporates often face challenges such as:

1. Internal Resistance To Change

TReDS onboarding can come across as an additional compliance task. Educating decision-makers about its benefits, such as improved cash flow visibility and seller goodwill will drive faster adoption.

2. Documentation Issues

Error in documents while submitting it on the portal often leads to delay in approvals. Providing updated legal, financial, and KYC documents saves time and effort.

Act Now!

With March 31, 2025 being just around the corner, the deadline of TReDS is staring at us. Leaving it for the last moment could potentially create unnecessary hurdles, including:

  • Regulatory non-compliance risks are offences which could lead to fines/ penalties.
  • Last-minute delays, as many corporates will rush to onboard just before the deadline ends.
  • Don’t miss to optimise cash flow, as TReDS opens up an efficient way to manage trade receivables.

Prepare Your Business For Future with TReDS

TReDS is much more than a compliance requirement, it’s a platform that amplifies financial efficiency, strengthens sellers relationships, and streamlines cash flow. By registering on TReDS portal, corporates can highlight themselves as thought-leaders and reliable business partners while getting operational advantages.

Time is ticking. Do make sure your company is onboarded onto a TReDS platform before the March 31, 2025 deadline. Prepare your business for the future and embrace the future of digital invoice financing today.

Are you ready to get onboarded on DTX (RBI licensed TReDS portal), initiate registration, and give your business ease of seamless financial transactions.