Check your TReDS eligibility in 60 seconds. Get exact rejection reasons, platform-specific results for RXIL, M1xchange, and Invoicemart, and step-by-step fix actions — not just a Yes/No answer.
TReDS (Trade Receivables Discounting System) is an RBI-licensed electronic platform where MSMEs can sell their unpaid invoices to banks and NBFCs at a discount — getting cash immediately instead of waiting 30–90 days for the buyer to pay.
Three platforms are currently licensed: RXIL (NSE + SIDBI), M1xchange (Mynd Solutions), and Invoicemart (Axis Bank + mjunction).
The catch: eligibility is strictly controlled. RBI rules define exactly who can be a seller, who can be a buyer, and what invoice types qualify. Many MSMEs waste weeks in the process only to be rejected for fixable reasons.
TReDS Cost Example — ₹10,00,000 Invoice
Invoice: ₹10,00,000
Rate: 9% p.a. | Tenure: 45 days
Discount cost: ₹11,096
Platform fee (0.10%): ₹1,000
GST (18%): ₹2,177
Total cost: ₹14,273 | Cash received: ₹9,85,727
Effective APR: 11.6%
TReDS Eligibility Requirements (RBI Rules)
Seller must be MSME
Under MSMED Act 2006 (amended 2020)
Udyam Registration
Valid URN required for all 3 platforms
Buyer type
MSME buyers not allowed
Buyer on platform
Both on same TReDS platform
Invoice accepted
Buyer must approve on platform
Direct invoice
No subcontractor or indirect billing
60%+ of MSME rejections are due to the buyer not being registered on the platform — not the MSME's fault. This is fixable in 5–7 days.
Answer 6 questions based on RBI-mandated TReDS rules. You'll get exact eligibility, the reason if ineligible, and specific fix steps.
Under MSMED Act 2006 (amended 2020): Micro — turnover ≤ ₹5 Cr; Small — ≤ ₹50 Cr; Medium — ≤ ₹250 Cr
Based on RBI Master Direction on TReDS, 2014 — updated for May 2025
Complete the 6 questions to get your TReDS eligibility result — with exact reasons and fix steps.
All three platforms operate under RBI license. Key differences are in rates, fees, buyer base, and onboarding speed.
| Parameter | RXIL | M1xchange | Invoicemart |
|---|---|---|---|
| Promoters | NSE + SIDBI | Mynd Solutions | Axis Bank + mjunction |
| Discount Rate (p.a.) | 7.5%–10.5% | 8%–11% | 7.8%–10.8% |
| Platform Fee | 0.03%–0.10% | 0.05%–0.15% | 0.05%–0.10% |
| Min Invoice | ₹40,000 | ₹1,00,000 | ₹50,000 |
| Onboarding Time | 7–10 days | 5–7 days | 7–14 days |
| Buyer Base Strength | PSU / Govt heavy | Mid-market corporates | Manufacturing / Auto |
| MSME Setup Fee | Nil | Nil | Nil |
| GST on charges | 18% | 18% | 18% |
| Financier pool | Banks + NBFCs | Banks + NBFCs | Axis Bank + others |
Source: Platform pricing pages (RXIL, M1xchange, Invoicemart) + RBI TReDS filings. Data as of May 2025. Rates vary by buyer credit rating and invoice tenure.
Anonymized from invoicefollowups.com user data and TReDS platform reports, 2024.
₹8 lakh invoice rejected — buyer not onboarded
Manufacturing, Pune
Problem
MSME had valid Udyam, corporate buyer, direct invoice. Rejected because buyer (Tier-1 auto OEM) was not registered on RXIL.
Resolution
MSME shared RXIL buyer registration link with buyer's AP team. Buyer onboarded in 6 days. Invoice discounted at 9.2% — ₹9,041 total cost on ₹8L for 45 days.
MSME approved after Udyam migration
IT Services, Bengaluru
Problem
MSME had old UAM (Udyog Aadhaar) registration. M1xchange rejected onboarding — required Udyam (new format). UAM migration not done.
Resolution
Migrated UAM to Udyam at udyamregistration.gov.in in 12 minutes. Resubmitted M1xchange application. Approved in 5 days. First invoice discounted at 8.5%.
Subcontractor invoice — not eligible for TReDS
Construction, Hyderabad
Problem
MSME raised invoices to main contractor (an MSME), who in turn billed the PSU. Invoice not directly with PSU — ineligible.
Resolution
Switched to KredX NBFC factoring for subcontractor invoices at 13.5% p.a. No buyer registration needed. ₹25L invoice funded in 3 days.
TReDS is the cheapest option at 8%–12% effective APR, but eligibility is strict. If you're blocked by buyer type or subcontract invoices, NBFCs like KredX and Drip Capital fill the gap at 13%–18% p.a. — with no buyer registration requirement.
| Factor | TReDS | KredX / NBFC |
|---|---|---|
| Rate (p.a.) | 7.5%–11% | 13%–18% |
| Buyer registration | Required | Not required |
| MSME requirement | Mandatory | Not mandatory |
| Subcontract invoices | ❌ Not eligible | ✅ Often accepted |
| Min invoice | ₹40,000–₹1,00,000 | ₹50,000+ |
| Collateral | None | None (invoice-backed) |
| Off-balance-sheet | Yes | Yes |
| Processing time | Same day (post-setup) | 2–5 days |
MSME Seller — KYC Documents
Udyam Registration Certificate
New format only (not UAM)
GST Registration Certificate
Active GSTIN required
PAN Card (Company + Authorised Signatory)
Bank Account + Cancelled Cheque
Account in business name
Last 6 months Bank Statement
For credit assessment
Certificate of Incorporation / Partnership Deed
Entity proof
Audited financials (last 2 years)
For higher limits
Board Resolution / Authorization Letter
For companies
Once you're eligible, the next question is cost. Calculate exact discount charges, platform fees, GST, and effective APR for your specific invoice.
Invoice Discounting Cost Calculator
Calculate exact discount cost, fees, GST and effective APR for your invoice.
ToolDSO Calculator
Calculate Days Sales Outstanding and see how much cash is locked in your AR.
GuideHow TReDS Works for Indian MSMEs
Complete guide to the TReDS process — from invoice upload to cash in account.
GuideInvoice Discounting Rates India
Current rates across RXIL, M1xchange, Invoicemart, and NBFCs — with examples.
External ↗RBI Master Direction on TReDS
Official RBI rules governing TReDS eligibility, operations, and charges.
External ↗Udyam Registration Portal
Register or migrate your MSME certificate — free and instant with Aadhaar.
Methodology & Data Attribution
Eligibility Rules Source: RBI Master Direction on TReDS, 2014 ↗ + RBI circular FIDD.MSME & NFS.BC.No.21/06.02.31/2019-20 (mandatory CPSE onboarding) + platform-specific KYC requirements from RXIL, M1xchange, and Invoicemart onboarding documentation.
Cost Calculation Method: Discount Cost = Invoice × Rate × Days ÷ 365. Total Cost = Discount + Platform Fee + GST (18%). Effective APR = (Total Cost ÷ Invoice) × (365 ÷ Days) × 100.
Rate Data: Platform-published rate ranges from RXIL, M1xchange, and Invoicemart pricing pages + RBI TReDS transaction data (FY2024).
Data Collected By: invoicefollowups.com Research Team
Last Updated: May 2025
Rejection Case Data: Anonymized from invoicefollowups.com user interactions and platform support logs, Q1–Q4 2024.
Disclaimer: This tool provides eligibility guidance based on published RBI rules. Final eligibility is determined by the platform at the time of registration. Rates are indicative and subject to change.