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  • TRe DS

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    Aditya Roy
    11 views20 pages
    An MSME can exchange its trade receivables for a loan from a financier through a government program. The MSME provides electronic bills or vouchers as collateral for the loan. Once payment is received from the CPSE buyer, the MSME repays the loan to the financier. This allows the MSME to access working capital to maintain operations and sustain its business.

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    TReDS

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    An MSME can exchange its trade receivables for a loan from a financier through a government program. The MSME provides electronic bills or vouchers as collateral for the loan. Once payment is received from the CPSE buyer, the MSME repays the loan to the financier. This allows the MSME to access working capital to maintain operations and sustain its business.

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    © All Rights Reserved
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    11 views20 pages

    TRe DS

    Uploaded by

    Aditya Roy
    An MSME can exchange its trade receivables for a loan from a financier through a government program. The MSME provides electronic bills or vouchers as collateral for the loan. Once payment is received from the CPSE buyer, the MSME repays the loan to the financier. This allows the MSME to access working capital to maintain operations and sustain its business.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 20

    Just exchange your "Trade Receivables" to free up cash flows.

    Done by GoI
    Based on e-
    bill, voucher,
    trade
    receivable

    Maintain the
    operational cost and
    sustain business
    Working Capital
    MSME

    Loan received from financier is used as working


    capital, while credit sale is made to the CPSE Buyer

    Provided loan to the MSME(Business) at


    low rate of interest

    Once the payment is received from


    CPSE, loan repayment is made to
    the Account receivable financier
    Short term loan, so no fresh bidding on
    same invoice.

    Loan given against invoice at


    discounted rate

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