Trade receivables discounting platform M1xchange has tied up with HDFC Bank with an aim to provide more liquidity to small businesses at competitive interest rates. ”HDFC Bank has partnered with M1xchange promoted by Mynd Solutions Pvt Ltd to make a debut in the Trade receivables Discounting System (TReDs) platform. This move is expected to bring in high liquidity to buyer corporates and MSMEs at competitive interest rates,” said a release on Tuesday. ”
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TReDS system, regulated by RBI, enables Micro, Small & Medium Enterprises (MSMEs) to auction their trade receivables online and borrow funds from the financial institution which offers loan at the lowest rate of interest. ”The collaboration between HDFC Bank and M1xchange is another significant step forward in the provision of financing to MSME and micro category businesses,” Sundeep Mohindru, MD & CEO, M1xchnage, said. ”
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HDFC Bank will benefit from partnering with M1xchange with shorter tun-around time and lower administrative costs in booking additional new-to-bank (NTB) corporate buyer relationships, he said. This partnership is expected to bring in more liquidity and enhance adoption of TReDS among a wider number of corporate customers and MSMEs, Vijay Mulbagal, Senior Executive Vice President, HDFC Bank, said.
