M1xchange to help MSMEs avail liquidity at 4-9% with international version of TReDS

New Delhi, Jan 20 (KNN) M1xchange, a Trade receivable platform (TReDS) for MSMEs on Friday announced that it has commenced the testing of international version of TReDs (ITFS) where Indian MSMEs can avail liquidity as low as 4-9 per cent against their invoices.

M1NXT, the new offering will support Indian Exporters with liquidity for international trade transactions through a worldwide network of institutional financiers and Banks that purchase receivables through a real-time marketplace.

Once fully rolled out, the product is likely to help address a part of the over USD 17 trillion global trade finance opportunity, as per Mckinsey global payments report 2020.

The new facility was introduced in a curtain-raiser event for Export Promotion Councils (EPCs) in New Delhi on Friday. 

The International Financial Services Centers Authority (IFSCA) has granted license to M1NXT (Mynd IFSCA P LTD) to set up ITFS platforms in order to capitalize on the enormous potential for cross-border supply chain trade finance.

With these new ITFS services, at the first stage, Indian MSMEs can avail liquidity (early payment) against invoices after exporting their goods and services to US, Europe, Middle East and Singapore markets, from various financiers on boarded with ITFS.

The financiers currently onboarded are from various geographies in US, Singapore middle-east and gift city.

The main objective for such platforms is to create a meaningful impact on the global export market, utilizing the most of globalization and digitalization. 

All this is expected to be of a big support for the government’s vision of Making India a 5 trillion USD economy, said M1xchange.  (KNN Bureau)