New Delhi, July 10: The Ministry of Micro, Small and Medium Enterprises (MSME) has said that the TReDS settlement mandate will help accelerate payments to small businesses and improve their access to working capital.
The Trade Receivables Discounting System (TReDS) enables MSMEs to convert their unpaid invoices into immediate funds by allowing them to receive payments from financiers before the actual due date. The new settlement mechanism is expected to make the process faster, smoother, and more efficient.
The ministry said the move will address one of the biggest challenges faced by MSMEs — delayed payments — and provide businesses with better liquidity to manage operations, expand capacity, and invest in growth.
Officials highlighted that improving cash flow for small enterprises will strengthen the MSME ecosystem and support entrepreneurship across the country.
The initiative is part of the government’s broader efforts to create a more supportive business environment for MSMEs and ensure timely access to finance for small and emerging enterprises.
