Cash flow can literally make or break any business. Yet, MSMEs struggle, endlessly, with working capital due to unpaid invoices. Invoice discounting is a smart solution which transforms outstanding invoices and long payment cycles into capital.
Invoice discounting is short-term borrowing by selling unpaid invoices to a financier at a discounted rate. It allows companies to have better control over sales ledger while maintaining a regular flow of working capital. GoI’s new mandate to make TReDS platform registration mandatory, getting funds through TReDS invoice discounting has become much easier.
How Does Invoice Discounting Work?

Invoice discounting allows you to have a better control over customer relationships and collections as opposed to Invoice Factoring where the Financier manages collections.
Why TReDS Invoice Discounting is a Game-Changer
TReDS (Trade Receivables Discounting System) is RBI-regulated digital marketplace that brings MSMEs and financiers on one platform. It is designed to empower businesses and help them get the best rates for invoice discounting.
Key Advantages Of Using A TReDS Platform
Regulated and transparent financing
Faster access to working capital
Competitive discounting rates
No collateral requirement
Benefits of Invoice Discounting
Who Are The Beneficiaries?
Businesses that:
Operate on credit terms with delayed invoice payments
Need to maintain steady cash flow for operations
Want to avoid the hassle of taking traditional loans
Work with reliable clients who pay on time
Industries such as manufacturing, logistics, retail, IT services, and professional services can particularly benefit from TReDS invoice discounting.