REVOLUTIONIZING SUPPLY CHAIN FINANCE FOR MSMES: IS TREDS THE NEXT BREAKTHROUGH?

Paper Number :WP50/2024
Publication Date :Dec. 24, 2024

Despite the significant contribution of the MSMEs they face critical funding issues in the entire supply chain process and are often at the mercy of the large corporates or the big manufacturers. MSMEs are not only financially weaker with difficulties in sourcing capital but they are charged heavily by the banks for the working capital fund. In this context, the introduction of TReDS as a price discovery mechanism for MSMEs is of paramount importance to ensure financial stability in the supply chain. The process flow and the usage of TReDS have been explored here to understand its viable role in providing timely and adequate finance at competitive rates and thus its role as a potential game-changer.