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MSME: Compulsory TReDS to ease payment woes for MSMEs, small companies

Synopsis The Centre is seeking to cut through swathes of bureaucracy and speed up bill payments by getting its departments to compulsorily adopt the Trade Receivable Discounting System or TReDS. For the government, quick vendor payments should enhance competitive intensity and lower its costs. Agencies Other key recommendations include the integration of GSTN e-in voicing portal with TReDS as well for smoother underwriting. MUMBAI: The money troubles for MSMEs and small vendors dealing with various government agencies might ease soon as New Delhi ‘factors in’ major changes to the way it pays its billers. The Centre is seeking to cut through swathes of bureaucracy and speed up bill payments by getting its departments to compulsorily adopt the Trade Receivable Discounting System or TReDS. For the government, quick vendor payments should enhance competitive intensity and lower its costs.

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