• TReds (Trade Receivables Discounting System) is a platform launched by the Government of India to facilitate the financing of trade receivables. It aims to enhance the access of MSMEs (Micro, Small, and Medium Enterprises) to working capital by enabling the discounting of trade receivables on a digital platform.
• In the Union Budget 2024-25, the onboarding turnover threshold for companies to participate in the TReds platform has been reduced from Rs. 500 crore to Rs. 250 crore. This change is intended to increase the accessibility of the platform for a larger number of MSMEs and enhance their ability to avail of funding based on their trade receivables.
• This move is in line with the government's efforts to support MSMEs by lowering the entry barriers for accessing working capital through the TReds system.
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