What is TReDS
About TReDS
TReDS (Trade Receivables Discounting System) is an RBI-regulated digital platform that facilitates the financing of trade receivables of Micro, Small and Medium Enterprises (MSMEs) from corporate buyers through invoice discounting. It brings together MSME sellers, large corporate buyers, and financiers on a single electronic platform to enable seamless, transparent, and efficient invoice financing.
TReDS Platforms in India, such as Bunny Bucks, offer a safe and secure ecosystem where approved invoices are uploaded and financiers bid to offer the best possible discounting rates. The seller receives early payment, while the financier collects the invoice amount from the buyer on the due date.
With TReDS Online, the entire process, from invoice upload to fund disbursement is paperless and fast. TReDS Registration is mandatory for companies over 250cr turnover. Through Online TReDS Registration, businesses can onboard quickly and start benefiting from early payments and improved cash flows.
The TReDS Platform plays a critical role in strengthening India’s MSME ecosystem by unlocking working capital and fostering financial inclusion.
TReDS
Salient features of TReDS
Benefits
Benefits of TReDS
Off Balance Sheet Funding
Disbursement in 24 Hrs*
Collateral Free Non-Recourse Finance
100% Data Security
Lowest Interest Rates
Easy Digital Onboarding
Bunny Bucks TReDS
The Reserve Bank of India granted approval to set up and operate Bunny Bucks, the first trade receivable exchange in India. Bunny Bucks has digitally transformed the process of gaining access to working capital for MSMEs via invoice discounting through multiple financiers. TReDS is an answer to the everlasting cash flow issues of the MSMEs in India and effective solution to drive the MSME sector to the next phase of Indian economy.
“The Department of Micro, Small and Medium Enterprises issued a notification stating that all companies registered under Companies Act and having a turnover of more than INR 250 crores and all Central Public Sector Enterprises are required to on board a TReDS platform, thus making TReDS registration mandatory for such companies. The Registrar of Companies (RoC) in every state has been nominated to be the competent authority to monitor the compliance of this notification.”
“The Department of Micro, Small and Medium Enterprises issued a notification stating that all companies registered under Companies Act and having a turnover of more than INR 250 crores and all Central Public Sector Enterprises are required to on board a TReDS platform, thus making TReDS registration mandatory for such companies. The Registrar of Companies (RoC) in every state has been nominated to be the competent authority to monitor the compliance of this notification.”
MSMEs get greater access to finance, at competitive rates without providing any additional collateral. Also, the financing is without recourse to the MSMEs.
Corporates save on procurement cost through an improved negotiation of financing term for its vendors.
Financiers get an opportunity to build PSL asset portfolio on Trade Receivable Exchange platforms like Bunny Bucks.
Faq’s
Frequently Asked Questions
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Q1. What are the benefits of TReDS for MSMEs?
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Q2. Is registration mandatory for corporates under TReDS?
Yes, as per government guidelines, TReDS Registration is mandatory for corporates with a turnover of ₹250 crore and above. These companies are required to register on any of the RBI-approved TReDS Platforms in India, such as Bunny Bucks. TReDS Registration Online ensures that MSME suppliers to these corporates can access early payments through digital invoice discounting. By participating in the TReDS Platform, corporates contribute to improved liquidity for their vendors while maintaining strong supply chains. This mandatory compliance fosters financial inclusion and promotes MSME growth through structured, transparent transactions on the TReDS Online system.
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Q3. What are the benefits of TReDS for MSMEs?
TReDS offers MSMEs access to timely, collateral-free working capital by allowing them to discount their receivables from reputed corporate buyers. On TReDS Platforms in India like Bunny Bucks, MSMEs benefit from faster payments, better cash flow management, and reduced credit risk. The entire TReDS Online process is transparent, digital, and competitive, enabling MSMEs to get the best financing rates. With easy TReDS Registration Online, MSMEs can unlock funds stuck in receivables and scale operations without relying on traditional loans. The TReDS Platform empowers small businesses to grow with financial independence and healthier cash cycles.