M1xchange makes SIDBI as its financier to enhance government initiative of TReDS

Mumbai, Dec 16 (KNN) Small Industries Development Bank of India (SIDBI) has partnered with M1xchange as the financier which is expected to bring liquidity to MSMEs at competitive interest rates.

M1xchange is a TReDS platforms which offers early liquidity to MSMEs within 24 hours through its online bidding platform through end-to-end digital process.

“The cost of funding outside the banking system is very high for MSMEs. With this unique proposition offered by M1xchange TReDS, MSME enterprises will be able to utilise TReDS for discounting of receivables from their corporate buyers in which multiple financial institutions like SIDBI can play a big role,” said Sundeep Mohindru, MD & CEO -M1xchange.

Corporate buyers in turn will be able to procure at better prices, added Mohindru who also welcomed SIDBI for coming onboard.

Calling TReDS an effective tool for prompt realization of MSME’s receivables, Sivasubramanian Ramann, CMD, SIDBI said, “We expect that more and more buyers will join and use TReDS platforms for effecting payments to their MSME suppliers and contribute to resolving the issue of delays in payment of MSME receivables to a larger extent.”

He reaffirmed SIDBI’s commitment towards increasing the flow of credit to MSMEs for their growth.

M1xchange looks forward to increase its footprints in digital factoring by 25 per cent to 30 per cent in the current fiscal anticipating this partnership with SIDBI gives a fillip to it.  (KNN Bureau)