In it’s bid to ensure positive business ecosystem for MSMEs, Steel Authority of India (SAIL) has collaborated with Invoicemart to facilitate a large number of MSMEs to tap into the digital platform and receive timely payments.
Being one of the seven Maharatnas of the country’s Central Public Sector Enterprises (CPSEs), SAIL completed its first transaction on digital invoice discounting marketplace, Invoicemart.
With this partnership, steel giant SAIL joins over 140 large corporates that are on board with Invoicemart as buyers.
SAIL works with a large number of MSMEs and being a part of Invoicemart helps them in expediting payments to these MSMEs.
The teams at SAIL have been sending out notifications to all empanelled MSMEs giving them an option to be paid through TReDS and undertake workshops to make them comfortable with the concept.
Commenting over this collaboration, Managing Director & Chief Executive Officer of A. TReDS Ltd, Kalyan Basu said “We are privileged to be associated with SAIL as one of our buyers and we look forward to their invaluable support in our endeavor to facilitate mass formalization of the MSME sector.”
At Invoicemart, we draw on the extensive experience of Axis Bank and mjunction to address the financial challenges faced by MSMEs and support their strategic growth ambitions. In the first phase, close to 800 MSMEs will be on boarded by Invoicemart, he added.
Keeping in mind the recent liquidity crunch being faced by MSMEs, factoring is a hassle-free means for them to meet their working capital requirement without affecting the relationship with large corporate buyers. Factoring helps the large corporates too, as it allows them to lower their procurement costs, stated Basu.
He further added “The TReDS platform is growing at a rapid pace, we are investing in financial technology and innovation to enhance our capabilities. In less than 18 months of its operations, Invoicemart has achieved a cumulative throughput of INR more than 2200 crores, which is highest among the three TReDS exchanges.”
Globally factoring is a USD 2849 billion industry with India forming a miniscule part of it at USD 5.2 billion.