SIDBI partners with M1xchange

Insight Online News

New Delhi, Dec 15 : Small Industries Development Bank of India (SIDBI) on Thursday said that it has partnered with M1xchange as the financier.
The move is expected to bring liquidity to MSMEs at competitive interest rates, a statement from the company said.

“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,” Sundeep Mohindru, MD & CEO -M1xchnage, said.

“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,” Sivasubramanian Ramann, CMD, SIDBI, said.

UNIINDIA

Leave a Reply

Your email address will not be published. Required fields are marked *