TReDS is an institutional system established to permit the discounting of invoices from corporate customers for MSMEs by numerous financiers. TReDS invoice discounting involves three parties: the MSME Supplier, the Corporate Buyer, and the Financier. Depending on the manner of discounting, the invoice is posted by either the customer or the supplier and approved by the other party. Once the invoice is accepted, financiers on the platform begin bidding on it. The bid is accepted by the supplier, and the discounted amount is credited to its account in T+1 day, where T is the day of acceptance.

The following are the key characteristics of TReDS:

Easy Access to Fund

No paper Work

Single Platform for sellers, Buyers and Financers

Transact Online

Seamless Data Flow

Standardized Practices