TReDS Is Now Mandatory for ₹250 Cr+ Buyers: Get Your Invoices Paid in Days, Not Months

Every company above ₹250 crore turnover and all CPSEs must be on TReDS, the RBI invoice-discounting platform that has channelled over ₹7 lakh crore to MSMEs. Here is how small suppliers turn unpaid invoices into same-week, without-recourse cash.

30 June 2026 7 min read

Key Takeaways

Buyers above ₹250 crore turnover and all CPSEs must onboard a TReDS platform (MSME Ministry notification, 7 November 2024).
TReDS financing is "without recourse" — if the buyer later defaults, the liability sits with the financier, not the MSME supplier.
TReDS has already channelled over ₹7 lakh crore of MSME financing; multiple financiers bid, so discount rates often beat a standard overdraft.

By Mani MuruganFinance & GST Lead · 10+ yrs experience

If your business sells to mid-size and large companies, one of your biggest cash-flow problems — waiting 60, 90 or 120 days to get paid — now has a government-backed fix that is becoming hard for your buyers to dodge. Every company with turnover above ₹250 crore, and all Central Public Sector Enterprises, is required to be on a TReDS platform (M1xchange). That changes the math on your receivables. Here's how to use it.

What is TReDS and why does it matter?

TReDS — the Trade Receivables Discounting System — is an RBI-regulated electronic platform where MSMEs convert unpaid invoices into instant cash through competitive bidding by multiple financiers (Clear). Launched by RBI in 2018, it has already enabled over ₹7 lakh crore of MSME financing. Instead of chasing a buyer for months, you upload the invoice, banks bid to fund it, and you get paid up front at a discount.

The protection that makes it attractive: TReDS financing is "without recourse". If the buyer later defaults, the liability sits with the financier, not you. You've already been paid and you're off the hook.

Who must be on TReDS now?

The MSME Ministry's 7 November 2024 notification cut the buyer-onboarding threshold from ₹500 crore to ₹250 crore turnover, with onboarding due by 31 March 2025 (M1xchange). All CPSEs are covered too. Non-compliance exposes those buyers to regulatory scrutiny — which gives you leverage to ask a large customer to settle your invoice on the platform.

How much does it actually help cash flow?

It collapses your payment cycle to near-immediate. Rather than financing a 90-day wait out of your own working capital — or a costlier overdraft — you discount the invoice the day it's accepted. Because multiple financiers bid, pricing is competitive, and rates often beat a typical MSME overdraft (TenderKosh). For a business running on tight margins, turning a receivable into same-week cash is the difference between taking the next order and turning it down.

Which platform should you register on?

RBI has authorised several: RXIL, M1xchange, Invoicemart and C2treds, with more approved over time (Indifi). They work similarly, so choose on the financier mix and the buyers already onboarded there — you need your buyer on the same platform for a deal to clear. Check RBI's current authorised-operator list before you register.

What's changing in 2026-27?

The Union Budget 2026-27 stacks three reforms on top: CGTMSE-backed credit guarantee for invoice discounting on TReDS, CPSEs mandated to settle all MSME purchases through the platform, and receivables packaged as asset-backed securities to build a secondary market (Trade Treasury Payments). Together they pull more high-quality, government-backed receivables onto TReDS and make financiers more willing to fund — meaning better access and pricing for sellers like you.

How to get started

Confirm Udyam registration — you must be a registered MSME to participate.
Pick a platform where your largest buyers already operate.
Onboard your buyer — or use their ₹250 crore obligation to nudge them on.
Upload accepted invoices and let financiers bid; compare the discount against your overdraft rate.

Not sure you're correctly registered as an MSME, or want your invoicing tightened up so it's TReDS-ready? Our finance team handles Udyam and bookkeeping, and you can reach out to get your receivables process in order.

What to verify before acting on TReDS Is Now Mandatory for ₹250 Cr+ Buyers

Rules and platform behaviour change after an article is published. Confirm thresholds, registration status, return forms, document rules, and portal notices against the GST Portal before you act on anything below, because the right answer depends on your entity, state, turnover, and current setup.

Going deeper: Bookkeeping Services, and Business ITR Filing.

Frequently asked questions

What is TReDS in simple terms?

TReDS — the Trade Receivables Discounting System — is an RBI-regulated online platform launched in 2018 where MSMEs sell their unpaid invoices to financiers who bid competitively to fund them. Instead of waiting 60-90 days for a large buyer to pay, you upload the accepted invoice, banks bid, and you receive most of the value up front at a small discount. It converts receivables into immediate working capital.

Which companies must register on TReDS?

Under the MSME Ministry notification dated 7 November 2024, all companies with annual turnover above ₹250 crore (reduced from ₹500 crore) and all Central Public Sector Enterprises must onboard a TReDS platform, with onboarding due by 31 March 2025. Non-compliance exposes those buyers to regulatory scrutiny, which gives MSME suppliers leverage to ask them to settle invoices on the platform.

Is TReDS financing risky for the supplier?

No — a key feature is that TReDS transactions are "without recourse". Once your invoice is discounted and you are paid, the credit risk transfers to the financier. If the buyer later defaults, you bear no liability for repayment. This is a major advantage over ordinary bill discounting or factoring arrangements where recourse often stays with the seller.

Which TReDS platform should I use?

RBI has authorised several, including RXIL, M1xchange, Invoicemart and C2treds. They function similarly, so choose based on which financiers participate and, crucially, which of your buyers are already onboarded there — both sides must be on the same platform for a transaction to clear. Always check RBI’s current list of authorised operators before registering, and ensure your Udyam registration is active.