SPONSORED CONTENT
×

Sponsored Content is a "Paid For" Press Release distribution arrangement. Purely a Commercial Arrangement, brands and advertisers pay to be featured and to get this content published.

The Editorial/Content team at Business Standard has not contributed to writing/editing this article.

To get your brand featured in this Section write to assist@bsmail.in

Jana Small Finance Bank ties up with all three TReDS platforms

November 11, 2021 18:30 IST | ANI Press Release
Tennis player James Blake
Jana Small Finance Bank

You would like to read

Bengaluru (Karnataka) [India], November 11 (ANI/PRNewswire): Jana Small Finance Bank has taken a significant step in easing the flow of liquidity to its MSME customers by tying up with all the three existing TReDS platforms, namely M1xchange, RXIL, and A.TReDS.

The partnership with Jana Small Finance Bank will now provide buyers and suppliers registered on all the TReDS platforms with a variety of options to secure funds by discounting invoices after sale.

The Trade Receivables Discounting System (TReDS) has been set up by RBI, in order to resolve the credit challenges faced by the MSME suppliers by enabling discounting of their invoices and bills of exchange.

TReDS ensures timely payments to MSMEs that access credit by posting their trade receivables on the system and getting them financed at a competitive rate through an auction mechanism where multiple financiers can bid on invoices accepted by PSUs/corporate buyers. Consequently, not only does this give MSMEs greater access to liquidity but it also puts greater discipline on corporates to pay their dues on time.

For MSME suppliers, TReDS offers the benefits of easy and quick availability of finance by discounting receivables at competitive rates, minimum and simple documentation, and overall better working capital management.

For buyers of the goods or services such as corporates, government departments, PSUs, etc., the platform helps to optimize working capital, reduced procurement cost, improve vendor management and lower administration cost for vendor financing, payments and settlements.

It is a single platform for sellers, buyers and financiers, making financing of trade receivables easy with no paper work, online transactions, competitive discount rates, seamless data flow, and standardized practices.

With the economy recovering after the COVID pandemic, Jana Small Finance Bank has been seeking to bolster its goal of building a robust and diverse MSME portfolio by stepping up its focus on supply chain financing. This partnership with all the three TReDS platforms is inclusive and provides access to a broad range of MSME loan-seekers.

Sumit Aggarwal, Head of MSE, Supply Chain & Financial Institutions, Jana Small Finance Bank said, "MSMEs contribute 30% of India's GDP, their growth depends on the availability of convenient, collateral free funding solutions to finance average outstanding receivables of Rs 500,000 crores per year, due to the time lapse between raising an invoice and receiving payment. By partnering with all available TReDS exchanges, we intend to become the go-to solution provider of supply chain finance to MSMEs that wish to unlock working capital without having to post collaterals or go through lengthy loan application processes."

This story is provided by PRNewswire. ANI will not be responsible in any way for the content of this article. (ANI/PRNewswire)

DISCLAIMER


(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

 

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Jana Small Finance Bank ties up with all three TReDS platforms

Bengaluru (Karnataka) [India], November 11 (ANI/PRNewswire): Jana Small Finance Bank has taken a significant step in easing the flow of liquidity to its MSME customers by tying up with all the three existing TReDS platforms, namely M1xchange, RXIL, and A.TReDS.

The partnership with Jana Small Finance Bank will now provide buyers and suppliers registered on all the TReDS platforms with a variety of options to secure funds by discounting invoices after sale.

The Trade Receivables Discounting System (TReDS) has been set up by RBI, in order to resolve the credit challenges faced by the MSME suppliers by enabling discounting of their invoices and bills of exchange.

TReDS ensures timely payments to MSMEs that access credit by posting their trade receivables on the system and getting them financed at a competitive rate through an auction mechanism where multiple financiers can bid on invoices accepted by PSUs/corporate buyers. Consequently, not only does this give MSMEs greater access to liquidity but it also puts greater discipline on corporates to pay their dues on time.

For MSME suppliers, TReDS offers the benefits of easy and quick availability of finance by discounting receivables at competitive rates, minimum and simple documentation, and overall better working capital management.

For buyers of the goods or services such as corporates, government departments, PSUs, etc., the platform helps to optimize working capital, reduced procurement cost, improve vendor management and lower administration cost for vendor financing, payments and settlements.

It is a single platform for sellers, buyers and financiers, making financing of trade receivables easy with no paper work, online transactions, competitive discount rates, seamless data flow, and standardized practices.

With the economy recovering after the COVID pandemic, Jana Small Finance Bank has been seeking to bolster its goal of building a robust and diverse MSME portfolio by stepping up its focus on supply chain financing. This partnership with all the three TReDS platforms is inclusive and provides access to a broad range of MSME loan-seekers.

Sumit Aggarwal, Head of MSE, Supply Chain & Financial Institutions, Jana Small Finance Bank said, "MSMEs contribute 30% of India's GDP, their growth depends on the availability of convenient, collateral free funding solutions to finance average outstanding receivables of Rs 500,000 crores per year, due to the time lapse between raising an invoice and receiving payment. By partnering with all available TReDS exchanges, we intend to become the go-to solution provider of supply chain finance to MSMEs that wish to unlock working capital without having to post collaterals or go through lengthy loan application processes."

This story is provided by PRNewswire. ANI will not be responsible in any way for the content of this article. (ANI/PRNewswire)

DISCLAIMER


(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22