VCFO Lite
TReDS invoice discounting for MSMEs (RXIL, M1xchange, Invoicemart)
What this means, checked by a CA
TReDS lets an MSME get paid early on an invoice its buyer has accepted: banks bid to discount it and the money comes the next working day, with no recourse to you if the buyer does not pay. We register you on a TReDS platform, link your buyers and set up the invoice flow.
₹2,999
One time onboarding, then per invoice, + 18% GST
- Delivered in About 3 working days after complete documents for platform approval; financing T+1 after a bid is accepted
- Due: Micro and small sellers should factor an invoice within 45 days of the goods acceptance date; invoice needs at least 15 days balance tenor
How we do it: IDFD
Every case runs through the same four steps: Information, Discussion, Forms, Deliverables. You see each one ticked as it happens.
InformationWhat we need from you · 10 items
Udyam Registration Certificate
Proves MSME seller status
Entity PAN, CIN or TAN
Master KYC under RBI rules
GST certificate or exemption declaration
Mandatory at M1xchange
Office address proof under 2 months
GST certificate not accepted
CA certificate of latest turnover
Required even with MSME certificate
KYC of promoters, admin and signatories
Platform onboarding
Bank confirmation letter
Payouts only to seller's own account
Signed application and master agreement
Contract with the platform
Beneficial owner details
25% plus shareholders or 15% partners
List of buyers and their TReDS status
Buyer must accept each invoice
DiscussionWhat we discuss · 6 items
Which buyers do you invoice, and are they on RXIL, M1xchange, Invoicemart, C2treds or DTX?
Pick the platform your buyers use
Has your bank taken a charge on receivables under a cash credit limit?
Invoice must not be financed or encumbered
Are you micro, small or medium under the 2025 limits?
Medium sellers now eligible; 45-day rule for micro and small
How long has the business been running?
RXIL asks at least one year
Who will bear the discount: you or the buyer?
Sets who fixes the cap rate
Do you have two people for maker and checker roles?
Platform requires separate users
FormsForms we file · 7 items
Choose the platform based on buyers registered there
Where: https://www.rxil.in. Due: Before onboarding
Create user ID and fill the online registration; upload KYC pack and CA turnover certificate
Where: Chosen TReDS platform. Due: User ID valid 30 days at RXIL
Sign master agreement, pay registration fee
Where: Chosen TReDS platform. Due: At registration
Link buyers; ask unregistered buyers to join or share their details with the platform
Where: Chosen TReDS platform. Due: Before first invoice
Upload tax invoice (maker), approve (checker); buyer accepts to create the factoring unit
Where: Chosen TReDS platform. Due: Micro and small: within 45 days of goods acceptance
Set cap rate and accept the best bid
Net receipt = invoice value minus discount for days to due date at accepted rate minus platform charge
Where: Chosen TReDS platform. Due: Bids accepted 9 AM to 9 PM on working days (RXIL)
Receive funds and record the assignment in books (receivable assigned to financier, registered with CERSAI)
Where: Books of account. Due: T+1
DeliverablesWhat you get · 3 items
Platform registration approval
When: About 3 working days after documents
Funds for discounted invoice
When: T+1 after bid acceptance
Transaction statement for each factoring unit
When: After settlement
Questions people ask
If the buyer does not pay, does the bank come after me?
No. Discounted units are without recourse to the MSME seller.
When do I get the money?
On T+1, one working day after the bid is accepted.
Do I need to give security?
No security is needed from the seller or buyer for factoring.
Can a medium enterprise use TReDS?
Yes. Under the 2026 Directions sellers can be micro, small or medium.
What documents does an invoice need?
Only the tax invoice is mandatory; GRN, lorry receipt and credit or debit notes are optional.
Which platforms exist?
RXIL, Invoicemart, M1xchange, C2treds and DTX, as listed by the Ministry of MSME in July 2026.
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