Digital invoice discounting marketplace – Invoicemart has tied up with state-run lender Bank of Baroda to discount invoices for MSMEs. Buyers and sellers registered on the marketplace will now be able to access funding from Bank of Baroda. Invoicemart is a joint venture between Axis Bank Ltd and mjunction services ltd.
Bank of Baroda had recently announced that it was stepping up its focus on supply chain financing, to provide loans to MSMEs associated with large corporates. TReDS is an online mechanism that helps MSMEs unlock working capital without the hassle of applying for loans.
Globally factoring is a $ 2849 billion industry with India forming miniscule part of it at $ 5.2 billion. Recently Government of India advised all public sector banks and undertakings to get registered on TReDS platforms. This move opens the way for Indian SMEs and MSMEs to obtain the much needed trade finance.