TReDS Compliance Made Easy with Better Cash Flow

India’s finance leaders are under more pressure than ever to comply with tightening MSME regulations. With the TReDS compliance mandate in force and the 45-day MSME payment rule growing stricter, delayed payments now carry costly consequences—from tax disallowances to reputational risks. If your company crosses ₹250 crore in annual turnover, TReDS registration is no longer optional; it's a statutory obligation under the MSME Act.

But what if TReDS could be more than just a compliance burden?

What if it could become your most powerful working capital optimization tool?

That’s exactly what CashFlo enables. As India’s only all-banker, multi-TReDS platform, CashFlo not only simplifies TReDS onboarding and compliance, but also maximizes capital access, offers personalized invoice discounting, and helps you earn up to 2% interest subvention all while ensuring seamless MSME compliance.

The Compliance Headache: Missed Payments, Lost Tax Deductions

In today’s regulatory landscape, MSME vendors are protected by the 45-day rule. Any payment delay beyond this window can disallow input expenses under the Income Tax Act, hurting your bottom line.

Traditional accounts payable (AP) systems struggle to keep pace. Many companies still use spreadsheets, manual approvals, and fragmented processes making it easy to miss deadlines and difficult to identify which vendors are MSMEs.

Moreover, the TReDS platform in India, while well-intentioned, can often feel like a compliance checkbox rather than a business enabler.

Let’s break down the challenges:

• Missed MSME payments = Tax disallowances + compliance risks
  
  
• No access to capital = Poor working capital management
  
  
• Limited lender choice on TReDS = Suboptimal financing terms
  
  
• Fragmented systems = Delayed approvals, late payments, audit risk
  

A Game-Changer for MSME Financing

The Trade Receivables Discounting System (TReDS) is an RBI-regulated digital invoice discounting platform designed to help MSMEs access early payments from corporate buyers through third-party financiers (banks or NBFCs).

TReDS bridges the cash flow gap by converting unpaid accounts receivables into working capital, often within 48 hours. It allows MSMEs to monetize their invoice receivables without waiting for long payment cycles.

But for large buyers, TReDS compliance is now compulsory.

RBI guidelines on TReDS make it mandatory for companies with over ₹250Cr turnover to register on at least one TReDS platform and accept invoices from MSMEs via this route.

Why CashFlo Stands Apart: Multi-TReDS = Maximum Flexibility

Most TReDS platforms lock you into one lender or limit your funding flexibility. CashFlo is different.

CashFlo is India’s only Better Cash Flow, Multi-TReDS Platform.

• Access 10+ banks & NBFCs across multiple TReDS exchanges
  
  
• Compare and choose the best discounting terms in real-time
  
  
• Use dynamic rules to select which invoices to finance
  
  
• Maximize vendor participation through personalized pricing

By integrating seamlessly into your supply chain finance platform, CashFlo ensures you're never constrained by lender availability or subpar rates.

Unlock 2% Interest Subvention and Extend Credit at Half the Cost

CashFlo does more than ensure TReDS compliance; it transforms how finance teams manage working capital. One of the most powerful benefits is how it improves the cost-efficiency of vendor payments, offering both interest subvention and extended credit.

Let’s break it down.

In a traditional setup without CashFlo, vendors are paid on the due date (Day T). The buyer gets a 60-day extension on payment but ends up paying interest of ₹1.33 at an effective rate of 8% per annum. The total outflow becomes ₹101.33 for every ₹100 of vendor payment.

Now compare that with the CashFlo-enabled flow.

With CashFlo, the vendor is paid 60 days in advance (on Day T-60), but the buyer still gets the same 60-day credit period. This early payment earns the buyer a 2% interest subvention, and despite the extended timeline, the buyer’s total payout is only ₹100.66 bringing down the effective interest rate to just 3.96% p.a.

What does this mean?

• Buyers get 60 days of extra liquidity without the financial penalty of high interest
  
  
• MSMEs receive early payments, improving their cash flow health
  
  
• Everyone wins without compromising on compliance

With CashFlo, the cost of capital is almost cut in half, while compliance and vendor relationships are simultaneously strengthened.

Solving MSME Payment Delays Through Digital Invoice Discounting

CashFlo’s solution goes beyond just automation. It’s a digital trade finance platform for India that’s built with both buyers and vendors in mind.

Here’s how it tackles the real-world problems that limit adoption of traditional invoice financing platforms:

Why Traditional Programs Fail:

• Vendors are offered a single commercial discount rate ignoring their varied financing needs
  
  
• Vendors don’t want to discount every bill or disclose their working capital needs
  
  
• Payment timelines are often informal, leading to compliance gaps
  
  

How CashFlo Solves It:

• Vendors choose which invoices to discount and when
  
  
• Receive personalized discount rates for each transaction
  
  
• Schedule collections on-demand during the 45-day credit period
  
  
• Flat-rate pricing and anonymous funding deployment
  
  
• Real-time invoice financing with pro-rata calculations

Conclusion

The era of manual AP processes and limited access to vendor financing is over. With MSME protection tightening and the TReDS mandate for corporates now active, compliance is no longer optional; it's strategic.

CashFlo helps you go beyond compliance to financial agility, MSME trust, and scalable vendor participation.

Join India’s leading corporates already leveraging the CashFlo TReDS advantage to ensure regulatory compliance, maximize working capital, and support their supply chain partners.

TReDS compliance doesn’t have to be a burden. With CashFlo, it’s a business advantage.