Across August and September, five platforms operating under the Trade Receivables Discounting System facilitated Rs 75,788 crore in invoice financing. This marked a sharp 36% rise from the Rs 55,549 crore processed in the corresponding timeframe last year. The surge in transactions illustrates how smaller firms rely on central bank-regulated systems to fund inventory purchases and navigate cash flow needs.
Key points
Small and medium businesses used invoice discounting systems to secure inventory purchase…: Small and medium businesses used invoice discounting systems to secure inventory purchases for the festive season.
Trade Receivables Discounting System platforms are regulated by the Reserve Bank of India…: Trade Receivables Discounting System platforms are regulated by the Reserve Bank of India to provide working capital.
Central bank figures confirm a growing dependence of small enterprises on institutional i…: Central bank figures confirm a growing dependence of small enterprises on institutional invoice discounting mechanisms.
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Bengaluru: Invoice discounting platforms regulated by the Reserve Bank of India (RBI) recorded a jump in financing activity this festive season, as small and medium businesses turned to them to fund inventory purchases and other working capital needs.The five platforms operating under the Trade Receivables Discounting System (TReDS) financed invoices worth Rs 75,788 crore in August and September, a 36% increase from Rs 55,549 crore in the same
Business NewsTechStartupsFestive stocking drives 36% jump in TReDS volumes as small businesses seek working capital
Festive stocking drives 36% jump in TReDS volumes as small businesses seek working capital
Synopsis
The five platforms operating under the Trade Receivables Discounting System (TReDS) financed invoices worth Rs 75,788 crore in August and September, a 36% increase from Rs 55,549 crore in the same months last year, according to RBI data.
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