Trade Receivables Discount Scheme (TReDS)

Abstract

Opportunity-9

TReDS can be suggested by Practicing CMAs to their existing MSME Clients as a ‘Value addition Service’. To the new MSME clients CMAs can focus on MSME Cluster†located in their area of operation.

Thereby it is a Win-Win situation to both CMAs and MSME clients while suggesting TReDS.

For CMAs, it is an additional service (registration process of TReDS) offer to their existing clients, there by increasing their professional income.

MSMEs will get instant funds realization (T+2) on their ‘trade receivables’, thereby enabling quick recycling of funds leading to increase in turnover (sales). No bad debts for MSMEs. (As Financiers (Banks / NBFCs) are buying the receivable and NOT discounting the trade bills from MSMEs and Banks / NBFCs take over the credit risk from them while using TReDS by MSMEs).