TReDS - FAQ

Buyer FAQs

    The buyer is an entity, who purchases the goods and / or avails the services offered by micro, small and medium enterprises (MSMEs) as defined in MSME Development Act, 2006.

    If you purchase goods / services from MSMEs, you are qualified for registering on Invoicemart.

    It depends on the constitution of your entity. Please refer to ‘Downloads’ section for details.

    You need to enter into only one master agreement – with TREDS itself. This will enable you to participate on the platform without having to enter multiple factoring agreements.

    This agreement shall capture the following key aspects:

    • The buyer is obliged to pay on the due date once the factoring unit is accepted.
    • The buyer’s acceptance on the platform is deemed irrevocable and irreversible.
    • There shall be no recourse to disputes with respect to quality / quantity of goods or otherwise, once the invoice has been accepted by the buyer.
    • As a buyer, you will be required to accept the FUs created by your sellers, after performing the relevant checks at your end.
    • Depending on your arrangement with your seller, you may have to bear the interest cost.
    • You will be required to pay the financier the outstanding amount on the due date.
    • As a buyer, you will be required to upload the invoice details along with the invoice.
    • If you choose to bear the interest, these invoices will be pre-approved; if not, the seller’s approval will be required.
    • Once the bids have been submitted by the financiers, you may choose the bid of your choice.
      • If the seller has to pay the interest, the bid will be chosen by the seller.
    • You will be required to pay the financier the outstanding amount on the due date.
    • Invoicemart shall debit the financier’s account for net value (invoice amount minus financier’s charges) and credit MSME seller’s account on ‘T+1’/ ‘T+2’ day (‘T’ is the Bid Acceptance day) through NPCI
    • Invoicemart shall send the payment information to you on successful credit in seller’s account
    • Invoicemart shall debit your account for the invoice value and credit financier’s account on the due date

    For the purpose of automatic settlement, Invoicemart will obtain your NACH mandate during the onboarding process.

    You will need to provide the settlement bank details along with the official email ID and contact no. of the Branch Head along with full address of the bank branch for future correspondence with Invoicemart.

    No, the extension of repayment period is not allowed by the platform.

    Invoicemart will generate the settlement file from ‘Due date’ to ‘Due date + 2 days’. If the settlement fails for 2 consecutive days from the due date, it will be treated as a default and the concerned parties will be notified.

    Yes, Invoicemart allows you to negotiate flexible payment terms with the financier, including pre-payment. The terms of pre-payment will depend on your arrangement with the financier.

    In case the settlement doesn’t happen for two consecutive days after due date, it will be treated as a default. In such a case, the financier will have the right to take legal action against the buyer.

    Invoicemart does not entail a guaranteed settlement. It is outside the purview of the platform and needs to be settled bilaterally between the buyer and the financier.

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