How CashFlo Maximizes Vendor Participation on the TReDS Platform

India’s MSMEs are vital to the country's economic engine but many continue to suffer from chronic payment delays. Even with government-backed systems like the Trade Receivables Discounting System (TReDS), adoption of invoice discounting platforms remains limited. The gap lies not in the idea, but in the execution of traditional programs.

Enter CashFlo TReDS platform, a next-generation solution that reimagines how suppliers interact with digital invoice discounting. CashFlo empowers vendors with transparency, flexibility, and control, resulting in significantly higher participation in TReDS in India.

The Problem with Traditional Discounting Programs

1. One Rate Doesn’t Work for All

Many traditional TReDS discounting processes use a fixed rate across all suppliers. But vendors differ in their cost of capital. A uniform rate can deter participation, especially in the MSME financing landscape where funding needs vary widely.

2. Vendors Prefer Privacy in Capital Planning

Most suppliers prefer to manage their capital plans independently without involving buyers in every liquidity decision. This desire to maintain financial independence limits engagement with discounting schemes that require buyer negotiation or visibility.

3. Mismatched Timing Needs

Not all vendors require funds immediately after raising an invoice. Their cash flow needs may arise in the middle of the credit cycle for example, on day 22 of a 45-day term. Traditional programs don’t offer the option to discount invoices at different stages, reducing the value of MSME liquidity solutions.

4. Manual, Time-Consuming Setup

Without a user-friendly interface or support team, many suppliers find it difficult to calculate their interest or understand the discounting workflow. This complexity hampers wider adoption across TReDS fintech platforms.

How CashFlo Solves These Challenges

CashFlo enhances the TReDS onboarding experience with a digital-first, vendor-friendly design that prioritizes usability, flexibility, and cost-efficiency.

a. Flexibility in Discounting

• Invoice-Level Discounting: Vendors can choose specific invoices to discount based on their immediate needs. This level of control transforms CashFlo into a highly adaptable MSME invoice financing platform.
  
  
• Custom Rates per Transaction: Rather than offering a fixed rate, CashFlo sets discounting terms tailored to each vendor and transaction making it a smart invoice financing solution.
  
  
• Scheduled Collections: Vendors can time their collections within the credit period, aligning with internal payment cycles and maximizing their working capital optimization.

b. Enhanced Transparency and Control

• Flat-Rate Pricing: Simplified pricing structure eliminates confusion and helps suppliers quickly evaluate if a transaction is worthwhile.
  
  
• Anytime Access: Vendors can log into the online invoice discounting system and complete transactions on any day during the credit period.
  
  
• Anonymous Fund Deployment: CashFlo ensures that fund sourcing is seamless and does not require vendors to disclose their liquidity needs to buyers encouraging broader usage.

c. Support and Enablement

• Instant Rate Calculations: The platform automatically calculates and displays interest based on timing, removing guesswork from the invoice discounting process.
  
  
• Negotiable Rates: Vendors can even propose a rate at which they’re willing to discount, giving them additional negotiating power on the TReDS platform.
  
  
• Dedicated Onboarding Teams: CashFlo’s outreach team personally connects with vendor decision-makers to guide them through the TReDS registration process, ensure compliance, and explain the ROI of early payments.

Real-World Impact: Better Economics for Buyers and Vendors

Let’s look at an example to illustrate CashFlo’s efficiency.

Scenario: 60-Day Extension Post Due-Date

• Without CashFlo (Standard TREDS):
  
  
  • Buyer pays Rs. 101.33 on Day T+60
    
    
  • Effective interest cost = 8% p.a.
    
    
• With CashFlo:
  
  
  • Vendor receives Rs. 98 on Day T-60 (120 days before)
    
    
  • Buyer pays Rs. 100.66 on Day T+60
    
    
  • Effective interest cost = 3.96% p.a.
    

Despite the vendor receiving funds much earlier (Day T-60), the buyer still ends up with a lower cost of capital thanks to the platform’s optimization and early engagement with vendors. That's win-win.

Driving Mass Vendor Adoption: More Than Just a Platform

One of CashFlo’s greatest strengths lies in its ability to scale not just technologically, but operationally.

Simplified Decision-Making for Vendors

Understanding discount rates, interest costs, and credit cycles can be overwhelming especially for smaller vendors. CashFlo makes this easy:

• The platform automatically calculates potential returns, enabling vendors to make informed decisions.
  
  
• It also allows vendors to propose their own rates, putting power back in their hands.
  
  

High-Touch Vendor Engagement

Unlike traditional models that rely on passive adoption, CashFlo actively drives usage:

• On-ground teams engage with senior stakeholders across the supply chain.
  
  
• They educate vendors, resolve objections, and demonstrate tangible benefits.
  
  
• This sales-led approach ensures that vendors see the value, understand the product, and trust the system.
  
  

The Bigger Picture: Strengthening the Supply Chain

By making working capital more accessible, more affordable, and more predictable, CashFlo helps buyers and vendors alike:

• Buyers benefit from lower cost of capital, improved supplier relationships, and stronger ESG compliance through vendor-friendly finance.
  
  
• Vendors gain access to just-in-time liquidity, helping them manage operations, pay employees, and invest in growth without waiting 45 or 60 days to get paid.

And most importantly, it all happens without friction, without compromise, and without complexity.

Conclusion

For many vendors, traditional invoice discounting platforms don’t reflect the realities of business. They’re rigid, one-size-fits-all, and often lack the flexibility required to meet dynamic cash flow needs.

CashFlo changes that.

By empowering vendors to choose how, when, and at what rate they want to discount invoices, and by removing frictions in the TReDS compliance guide, CashFlo unlocks the full power of the Trade Receivables Discounting System.

The result?

• Faster payments for vendors
• Lower cost of capital for buyers
• Higher liquidity in the supply chain
• Greater alignment with the MSME financing through TReDS vision of the Government of India

Whether you’re a corporate buyer aiming to optimize working capital for MSMEs, or a vendor seeking early payment discount systems, CashFlo TReDS advantage offers a future-ready solution. In the new era of digitizing MSME financing, CashFlo is not just another fintech platform it’s the one driving meaningful adoption and impact.