Small Industries Development Bank of India (SIDBI), the principal financial institution engaged in the promotion, financing, and development of Micro, Small, and Medium Enterprises (MSME) has partnered with M1xchange as the financier. This move is expected to bring liquidity to MSMEs at competitive interest rates.
M1xchange offers early liquidity to MSMEs within 24 hours through its online bidding platform through end-to-end digital process.
M1xchange is one of three TReDS platforms. TReDS is regulated by RBI that enables discounting of bills of Micro, Small & Medium Enterprises (MSMEs) resulting in improvement of cash flow and liquidity and overall improvement in functioning of MSMEs.
“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. Corporate buyers in turn will be able to procure at better prices. M1xchange is privileged to welcome SIDBI for coming onboard” said Sundeep Mohindru, MD & CEO -M1xchnage.
“TReDS have become an effective tool for prompt realization of MSME’s receivables and it provides for an effective solution to their working capital requirements. 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. SIDBI being an apex institution for promotion & development of MSMEs is fully committed towards increasing the flow of credit to MSMEs for their growth” said Sivasubramanian Ramann, CMD, SIDBI.