Union Budget 2023-24: TReDs platform M1xchange calls for Factoring Guarantee Fund

New Delhi, Jan 27 (KNN) Gurugram-based M1xchange which provides trade receivables discounting system to MSMEs has urged the Union Finance Minister Nirmala Sitharaman to roll out a Factoring Guarantee Fund which would make banks put lower capital on the table then currently required to build a factoring book.

Expressing the firm’s expectation from the upcoming union budget, Sundeep Mohindru, CEO at M1xchange told KNN India, “The Factoring Guarantee Fund should result in loosening purse strings of banks and more money (limits) getting allotted for factoring receivables of MSMEs.”

Appreciating the Emergency Credit Line Guarantee Scheme (ECGLS) scheme, Mohindru referring to SBI report said that the scheme saved lakhs of jobs by helping MSMEs hold out and overcome pandemic related cash burns.

“I anticipate some more reforms by way of implementation of further recommendation or two of UK Sinha Committee on MSME report,” he added.

Looking forward to Farm Sector reforms and roll out of National E- Market for Agriculture Produce on digital platforms, Mohindru said, “Possibly some rejig in personal and corporate IT rate slabs will make the budget ‘aam aadmi’ friendly.”

He further opined that higher allocation of funds for Green Energy projects is also expected as India is committed to Paris Accord on climate change.

Earlier this month M1xchange 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.  (KNN Bureau)