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Compulsory TReDS adoption by Govt. Departments for Better MSME liquidity

SMEStreet Edit Desk February 16, 2021Last Updated: February 16, 2021

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In response on the recent announcement by the Government to compulsorily getting its departments and agencies to adopt Trade Receivable Discounting System or TReDS, Mr. R. Narayan, Founder & CEO at Power2SME says –

“Power2SME welcomes the initiative by the Government getting its departments to compulsorily adopt the Trade Receivable Discounting System or TReDS. This will substantially ease the liquidity challenges of MSMEs and will further give boost to their operational efficiency to serve more business by reducing the gestation period. This will promote factoring as an attractive source of alternate finance to MSMEs at a competitive costs. As a part of Parliamentary committee on MSMEs, we have also suggested to allow NBFCs to be the financier on the TReDS platform.”