Small industries bank of india, Bank

Small Industries Development Bank of India (SIDBI), the principal financial institution engaged in the promotion, financing, and development of Micro, Small, and Medium Enterprises (MSME) has partnered with M1xchangeas the financier. This move is expected to bring liquidity to MSMEs at competitive interest rates.M1xchange offers early liquidity to MSMEs within 24 hours through its online bidding platform through end-to-end digital process. This is a highly effective and efficient solution for addressing the issue of delayed payment of MSMEs.M1xchange is one of three TReDS platforms. TReDS is regulated by RBI that enables discounting of bills of Micro, Small & Medium Enterprises (MSMEs) resulting in improvement of cash flow and liquidity and overall improvement in functioning of MSMEs. The Micro, Small, and Medium Enterprises sector accounts for the major share in the number of enterprises in India. This sector is also a major employment provider next only to agriculture and therefore, growth of this sector assumes greater importance."The cost of funding outside the banking system is very high for MSMEs. With this unique proposition offered by M1xchange TReDS, MSME enterprises will be able to utilise TReDS for discounting of receivables from their corporate buyers in which multiple financial institutions like SIDBI can play a big role. Corporate buyers in turn will be able to procure at better prices. M1xchange is privileged to welcome SIDBI for coming onboard" said Sundeep Mohindru, MD & CEO -M1xchnage. ""TReDS have become an effective tool for prompt realization of MSME's receivables and it provides for an effective solution to their working capital requirements. We expect that more and more Buyers will join and use TReDS platforms for effecting payments to their MSME suppliers and contribute to resolving the issue of delays in payment of MSME receivables to a larger extent. SIDBI being an apex institution for promotion & development of MSMEs is fully committed towards increasing the flow of credit to MSMEs for their growth" said Sivasubramanian Ramann, CMD, SIDBI.Till date M1xchange facilitated bill discounting of more than Rs 37,000 crores to over 14,000 MSME suppliers spread across 1,400 towns across the country at competitive rate of interest. TReDS enables the financial inclusion of MSMEs on a high scale, digitally, and with a positive social impact. This financing is without any collateral security and without recourse to MSMEs. The platform looks forward to increase its footprints in digital factoring by 25 per cent to 30 per cent in the current fiscal alone and this partnership with SIDBI gives a fillip to it.M1xchange is a TReDS (Trade Receivables Discounting) exchange that started in April 2017. M1xchange facilitates the financing of trade receivables of MSMEs from corporate buyers through 'factoring' or 'invoice discounting' by financiers (Banks and NBFC). In a short span of time, M1xchange has onboarded 49 Banks, 1,200+ corporates, and 13,500 + MSMEs and has facilitated discounting of invoices more than Rs 36,000 Crores. Transactions on the TReDS platform happen digitally and start when the MSME Supplier of Goods & Services raises the invoice, and the Buyer validates the same. This permits the financiers (Banks/ NBFCs) to bid against the verified and approved invoice. Once the supplier accepts the bid, the payment is processed in 24 hrs. and credited to the MSMEs bank account. Through this platform, M1xchange promises MSMEs greater access to finance at competitive rates and without providing any collateral. Further, the financing is without recourse. MSMEs pass on the risk of receivables to the financiers (NBFCs/Banks) by selling their receivables.SIDBI is the principal Financial Institution for promotion, financing and development of the MSME sector in India. It also co-ordinates the functions of various Institutions engaged in similar activities. SIDBI has more than 32 years of experience in Development Finance in areas of SME Credit, Credit Guarantee, Venture Capital, Cluster Development, Institutional Finance, development programs, etc.To know more, check out:This story is provided by PNN.will not be responsible in any way for the content of this article. (ANI/PNN)( With inputs from ANI )Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

Small Industries Bank Of IndiaFOLLOW

Small industries bank of india, Latest News

Yes Bank on Saturday posted a drop of 80 per cent in its net profit to Rs 52 crore ... ...

Mumbai (Maharashtra) [India], January 21 Kotak Mahindra Bank on Saturday posted a 17.43 per cent increase in its ... ...

Mumbai, Jan 20 In significant relief to 63 moons and others, the Bombay High Court on Friday set ... ...

HDFC Bank on Saturday posted 19.9 per cent growth in its net profit to Rs 12,698 crore for the ... ...

Global technology brand HONOR, will be launching its latest 11th Gen laptop in India - HONOR MagicBook X 14 11th gen i5. HONOR continuing its MagicBook X14 series boasts a sleek and premium design, unparalleled power, and provides an all-round magica ...

Yes Bank announced on Tuesday that it entered into an agreement with Microsoft to bring forth a next-generation mobile ... ...

On the occasion of its foundation day on December 18, IDFC FIRST Bank has announced zero-fee banking on savings ... ...

Small Industries Development Bank of India (SIDBI), the principal financial institution engaged in the promotion, financing, and development of Micro, Small, and Medium Enterprises (MSME) has partnered with M1xchangeas the financier. This move is exp ...