𝐆𝐨𝐯𝐞𝐫𝐧𝐦𝐞𝐧𝐭 𝐌𝐚𝐧𝐝𝐚𝐭𝐞𝐬 𝐓𝐑𝐞𝐃𝐒 𝐟𝐨𝐫 𝐒𝐞𝐭𝐭𝐥𝐞𝐦𝐞𝐧𝐭 𝐨𝐟 𝐀𝐥𝐥 𝐌𝐒𝐌𝐄 𝐈𝐧𝐯𝐨𝐢𝐜𝐞𝐬 𝐛𝐲 𝐂𝐞𝐧𝐭𝐫𝐚𝐥 𝐏𝐮𝐛𝐥𝐢𝐜 𝐒𝐞𝐜𝐭𝐨𝐫 𝐄𝐧𝐭𝐞𝐫𝐩𝐫𝐢𝐬𝐞𝐬
The Ministry of MSME has made it mandatory for all Central Public Sector Enterprises (CPSEs) to settle invoices received from MSME suppliers through the RBI-regulated Trade Receivables Discounting System (TReDS).
The objective is to:
– Reduce delayed payments to MSMEs.
– Improve working capital availability.
– Enable MSMEs to convert approved invoices into cash before the due date through competitive invoice discounting by banks and NBFCs.
– Improve payment transparency and compliance among CPSEs.
In simple terms,
𝐈𝐧𝐬𝐭𝐞𝐚𝐝 𝐨𝐟 𝐰𝐚𝐢𝐭𝐢𝐧𝐠 𝟔𝟎–𝟗𝟎 𝐝𝐚𝐲𝐬 𝐟𝐨𝐫 𝐩𝐚𝐲𝐦𝐞𝐧𝐭, 𝐞𝐥𝐢𝐠𝐢𝐛𝐥𝐞 𝐌𝐒𝐌𝐄𝐬 𝐜𝐚𝐧 𝐫𝐞𝐜𝐞𝐢𝐯𝐞 𝐜𝐚𝐬𝐡 𝐦𝐮𝐜𝐡 𝐞𝐚𝐫𝐥𝐢𝐞𝐫 𝐛𝐲 𝐝𝐢𝐬𝐜𝐨𝐮𝐧𝐭𝐢𝐧𝐠 𝐚𝐩𝐩𝐫𝐨𝐯𝐞𝐝 𝐢𝐧𝐯𝐨𝐢𝐜𝐞𝐬 𝐨𝐧 𝐓𝐑𝐞𝐃𝐒.
What problem is Government trying to solve?
The Government recognizes that:
– MSMEs often suffer because payments are delayed.
– Working capital gets locked in receivables.
– Businesses borrow expensive loans despite having outstanding invoices.
– Cash flow constraints limit growth.
The TReDS mandate is designed to improve payment discipline and accelerate cash flow for MSMEs.
Source : https://www.pib.gov.in/PressReleasePage.aspx?PRID=2283195®=48&lang=1
𝐂𝐑𝐄𝐃𝐈𝐌𝐎𝐑𝐄’𝐬 𝐀𝐑𝐌𝐒 𝐏𝐋𝐀𝐓𝐅𝐎𝐑𝐌
The Government has strengthened receivables financing through TReDS. Now it’s time for SMEs to strengthen receivables management.
𝐀𝐭 𝐂𝐑𝐄𝐃𝐈𝐌𝐎𝐑𝐄, 𝐰𝐞 𝐡𝐞𝐥𝐩 𝐒𝐌𝐄𝐬 𝐛𝐮𝐢𝐥𝐝 𝐚 𝐬𝐦𝐚𝐫𝐭𝐞𝐫 𝐫𝐞𝐜𝐞𝐢𝐯𝐚𝐛𝐥𝐞𝐬 𝐞𝐜𝐨𝐬𝐲𝐬𝐭𝐞𝐦 𝐭𝐡𝐚𝐭 𝐢𝐬 𝐓𝐑𝐞𝐃𝐒-𝐫𝐞𝐚𝐝𝐲, 𝐟𝐢𝐧𝐚𝐧𝐜𝐞-𝐫𝐞𝐚𝐝𝐲, 𝐚𝐧𝐝 𝐜𝐚𝐬𝐡-𝐟𝐥𝐨𝐰-𝐫𝐞𝐚𝐝𝐲.
Our Receivables Intelligence Platform that helps SMEs get the maximum benefit from TReDS while improving overall receivables performance.
TReDS finances approved invoices. Credimore helps businesses create, manage, monitor, protect, and realize receivables throughout their entire lifecycle. Together, they enable stronger cash flow, lower receivables risk, and healthier working capital.
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