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FAQs

  • General FAQs
  • Buyer
  • Seller
  • Financier
  • About Invoicemart
  • Regulatory Framework
  • Registration
  • transactions
  • settlement

Invoicemart is the brand under which A.TReDS Ltd offers all its products and services.

It is a digital platform based on Trade Receivables Discounting System (TReDS), which is a system instituted by the RBI to improve cash flows to MSMEs through factoring (and reverse factoring).

Invoicemart connects buyers, MSME sellers and financiers so as to ensure MSMEs receive quick payments for their invoices.

A.TReDS Ltd. is a joint venture between Axis Bank and mjunction services, which has been licenced by the RBI to operate its TReDS (Trade Receivables Discounting System) platform, under the Payment and Settlement Systems Act, 2007.

The objective of Invoicemart is to facilitate financing of invoices of MSMEs drawn on their buyers by way of factoring.

Suppliers categorised as MSMEs, corporate buyers and financiers (banks/NBFC factors) can participate on Invoicemart.

Factoring is a process which enables suppliers to reduce the payment period for their goods/services. It does this by introducing a financier between the supplier and the corporate buyer. The financier finances the supplier against the invoice/bill of exchange raised on the corporate buyer for the goods/services provided by the supplier.

In reverse factoring, a buyer raises an invoice, as opposed to factoring in which a seller raises the invoice on the system. The financier finances the supplier against the invoice/bill of exchange raised on the corporate buyer for the goods/services provided by the supplier.

Yes. The platform shall facilitate receivables factoring and reverse factoring.

Yes, the platform is for MSMEs from both manufacturing and services sectors.

Traditional invoice discounting usually involves a tripartite agreement between a buyer, seller and financier. Thus every buyer-seller-financier combination requires a different agreement, which is cumbersome.

  • With TReDS, every participant has to sign a one-time agreement with the platform itself. Businesses, thus, can focus on carrying out the factoring transaction without worrying about the administrative complexities;
  • By providing an auction-based platform involving multiple financiers, TReDS ensures that the MSME sellers receive funds at the most competitive rates in the market – in other words, it enables efficient price discovery;
  • TReDS offers a digital platform for factoring and reverse factoring, which makes it fast, efficient and convenient to use;
  • It can be integrated with the existing ERP system of buyers/sellers, enabling automatic uploading of invoices and subsequent settlements.
Invoicemart is governed by the Reserve Bank of India, as per the regulatory framework put in place under the Payment and settlement Systems Act 2007.

KYC documentation shall be in line with the documentation/verification done by the banks as per the existing regulatory requirements.

If you’re a corporate buyer, an MSME supplier, or a bank/NBFC factor, yes you can participate on Invoicemart.

The facility is limited to MSME sellers who are referred by their corporate buyers registered with Invoicemart. If you’re a financier, you must have a factoring licence from the RBI. There is no restriction on buyers, but you need to have MSME suppliers.

You can register online. Alternatively, you can also download the account opening form, master agreement and relevant annexures and share the filled up form with us at the communication address of Invoicemart.

Each participant needs to execute the Master Agreement with TReDS. The key highlights of each agreement are detailed in subsequent sections. Invoicemart shall be the custodian of all master agreements.

You can become a guest user now and register yourself by following this link.

The guest user link remains valid for 15 days. You should ensure that the form is filled up and the pre filled account opening form is generated within the given time frame.

No, you will not be able to reactivate the guest user link once it expires. You’ll have to create a new guest user profile to register yourself.

Yes. You may need to submit the request for retriggering the link from your registered email address to helpdesk@invoicemart.com You can also call up on 022 4975 7373 and request for the same.

To transact on Invoicemart, you need to be registered with us as a buyer, seller or financier. You will be given an account login ID with which you will be able to sign in and transact on the platform.

  • If you’re new to the platform, you may set up an account, after which we will guide you through the process. To sign up, click here.
  • If you’re a registered user and want to go to the platform, click here to sign in.

The financial instrument used for trading is your invoice/set of invoices (or bill of exchange). The platform captures all necessary details of the invoice in a digital format, which converts it into a factoring unit.

It refers to an invoice/set of invoices (or bill of exchange) that has been uploaded on the platform in a digital format.

Factoring unit(s) can be created either by the MSME seller (in case of factoring) or by the buyer (in case of reverse factoring).

The factoring unit(s) has to be accepted on the platform by buyers. However, in case of reverse factoring when a buyer agrees to bear the interest, pre-accepted FUs will be uploaded by the buyer on the platform.

The FU details are shared with registered financiers for bidding.

Yes the minimum amount for creation of factoring unit is INR 25,000 (Twenty Five thousand only).

FU creation FU Acceptance Bidding Bid Acceptance (1st confirmation window)* Bid Acceptance (2nd confirmation window)**
From to From to From to From to From to
9 am 9 pm 9 am 9 pm 9 am 9 pm 9 am 4:30 pm 4:31 pm 9 pm
* For T+1 settlement  ** For T+2 settlement

Invoicemart shall conduct random audits to confirm the authenticity and genuineness of transactions involving the sale of goods and services.

Invoicemart does not offer any guaranteed settlement and does not take any settlement risk. It is a platform which facilitates factoring/reverse factoring transactions.

You may incur the following costs associated with factoring/reverse factoring on Invoicemart:

  • The interest cost levied by the financier, to be borne by buyer or seller, as the case may be
  • The transaction charges levied by Invoicemart, borne by the party which bears the interest as well as the financier
     
  • Invoicemart shall debit the financier’s account for net value (post deduction of the financier’s charges) and credit MSME seller’s account on on ‘T+1’/‘T+2’ day (‘T’ is the Bid Acceptance day) through NPCI
  • Invoicemart shall send the payment information to the buyer on successful credit in seller’s account
  • Invoicemart shall debit the buyer’s account for the invoice value and credit financier’s account on the due date


For the purpose of automatic settlement, Invoicemart shall obtain NACH mandates from both buyers and financiers.

  • Onboarding
  • transactions
  • settlement

The buyer means any entity that purchases the goods and/or avails the services offered by micro, small and medium enterprises (as defined in MSME Development Act, 2006) for a consideration.

Factoring is a financial arrangement whereby a specialist finance company (the factor) purchases the debts of a firm for an amount less than the book value of those debts. The firm benefits by receiving immediate cash from the factor and avoids the trouble and expense of pursuing tardy debtors. Each transaction is considered as one factoring unit.

If you purchase goods/services from MSMEs, you can register on Invoicemart.

To participate, you just have to sign a one-time master agreement with A.TReDS Ltd, which operates the Invoicemart platform. No hassles of entering into multiple factoring agreements. A.TReDS Ltd enters into a similar master agreement with other participants such as financiers and sellers.

A - CONSTITUTION-WISE DOCUMENTS

Limited/Pvt. Ltd. Company

  • Certificate of Incorporation
  • PAN
  • Memorandum and Articles of Association
  • Board Resolution
  • List of Directors with DIN

LLP

  • Certificate of Incorporation
  • PAN
  • LLP Resolution
  • Partnership Deed
  • List of Designated Partners with DPIN

Trust/Society

  • Certificate of Registration
  • PAN
  • Trust Deed
  • Bylaws of Trust
  • Trust Resolution
  • List of Trustees

Partnership Firm

  • Trade Licence/Shop & Establishment Certificate/Registration Certificate from State Govt. or Statutory Body/GST Certificate
  • PAN
  • Partnership Deed
  • Partnership Letter

Sole Proprietorship Firm

  • Trade Licence/Shop & Establishment Certificate/GST Certificate/Registration Certificate from State Govt. or Statutory Body/Electricity Bill/Telephone Bill/Water Bill/Bank Account
  • Statement/Property or Municipality Tax Receipt/Complete ITR (Any two of these)
  • PAN
  • Letter of Proprietorship

HUF

  • Trade Licence/Shop & Establishment Certificate/GST Certificate/Registration Certificate from State Govt. or Statutory Body/Electricity Bill/Telephone Bill/Water Bill/Bank Account
  • Statement/Property or Municipality Tax Receipt/Complete ITR (Any two of these)
  • PAN
  • HUF Letter

B - COMMON DOCUMENTS FOR ALL

Address Proof of the Entity

  • Electricity Bill/Telephone Bill/Water Bill/Bank Account Statement/Property or Municipality Tax Receipt
  • Latest Audited Annual Report/Balance Sheet
  • Cancelled Cheque
  • MSME Certificate by CA
  • Authority Letter for Assignment of Receivables (In case of Reverse Factoring)
  • Master Agreement with Seller (Signed by Authorised Signatory)
  • Office/Unit Visit Report
  • Beneficial Ownership (BO) Declaration Letter with KYC documents of the individual BOs
  • Recommendation Letter from Buyer
  • Account Opening Form (Signed by Authorised Signatory)

Documents required:

  • Application Form
  • Master Agreement
  • NACH Mandate
  • Accepted Fee Letter
  • All KYC documents of Entity
  • All KYC documents of Authorised Signatories
  • All KYC documents of Entity Administrator
  • All KYC documents of Entity Administrator
  • Declaration of Beneficial Ownership with KYC
  • Audited/Provisional Balance Sheet
  • Cancelled Cheque
  • Processing Fee Cheque
  • Unit/Office Visit Report
  • Check list from RM
  • Company Master and Index Master downloaded from MCA portal
  • RAMP screening done
  • BQS done
  • Aadhaar - No validation from UIDAI
  • Any Deviation Approval – please specify
  • The buyer will be required to accept the factoring units which contain the details of invoices, payable amount, due date and tenor after performing relevant checks with respect to the quality or quantity of goods or services contracted.
  • Depending on the arrangement with the seller, the buyer may have to bear the interest costs.
  • The buyer will have to pay the outstanding amount to the financier on the due date.
     
  • The buyer is required to upload the invoice details along with the invoice copies.
  •  If the buyer chooses 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, the buyer/s may choose the bid of their choice.
  •  If the seller has to pay the interest, the bid will be chosen by the seller.
  • The buyer will be required to pay the financier the outstanding amount on the due date.

Invoicemart shall debit the financier’s account for the net factoring unit value (factoring unit amount minus financier’s charges) and credit the seller’s account on ‘T+1’/‘T+2’ day (‘T’ is the Bid Acceptance day) through National Payments Corporation of India. Invoicemart shall debit the buyer’s account with the factoring unit value and credit financier’s account on the due date. For the purpose of automatic settlement, Invoicemart will obtain the buyer’s National Automated Clearing House (NACH) debit mandate during the onboarding process.

Buyers are required to provide the settlement bank details along with the official email ID, contact number of the branch head and full address of the bank branch.
No. The extension of repayment period is not allowed on the Invoicemart platform.
Yes. Invoicemart allows the buyer to seek pre-payment. The terms of pre-payment viz. due date and pre-payment charges if any, will be at the discretion of the financier.
In case the settlement doesn’t happen on the due date, it will be treated as a default. In such an eventuality, the financier will have the right to initiate legal action against the buyer.

Invoicemart attempts the settlement on due date and the next two working days. If the settlement fails, it will be treated as a default and needs to be settled bilaterally between the buyer and the financier.

  • Onboarding
  • transactions
  • Agreement
  • settlement

A seller is a micro, small or medium enterprises (MSMEs) as defined under section 7 of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, supplying goods and/or services to the buyers.

A financial arrangement whereby a specialist finance company (the factor) purchases the debts of a firm for an amount less than the book value of those debts. The firm benefits by receiving immediate cash from the factor, and avoids the trouble and expense of pursuing tardy debtors.

Any MSME can register provided they meet the following two conditions.

  • Needs to be an MSME as defined in the MSMED Act, 2006.
  •  In addition, the seller needs to be recommended by a buyer registered on Invoicemart to participate on the platform.
  • Application Form
  • Master Agreement
  • Authority Letter for Assignment of Receivables
  • MSME Certificate/CA Certificate
  • Accepted Fee Letter
  • Seller Recommendation Letter from Buyer
  • All KYC documents of Entity
  • All KYC documents of Authorised Signatories
  • All KYC documents of Entity Administrator
  • Board Resolution/POA/LOA
  • Declaration of Beneficial Ownership with KYC
  • Audited/Provisional Balance Sheet
  • Cancelled Cheque
  • Processing Fee Cheque
  • Unit/Office Visit Report
  • Check list from RM
  • Company Master and Index Master downloaded from MCA portal
  • Is CERSAI report downloaded for Seller with Current Account given for settlement
  • If Seller has given Current Account for settlement, whether Seller was enquired about availing any CC/working capital facility?
  • RAMP screening done
  • BQS done
  • CA Membership Verification
  • Aadhaar - No validation from UIDAI
  • Any Deviation Approval – please specify

Please click here to register.

  • In case of factoring, the seller has to upload invoices and fill relevant details to create a factoring unit/s (FUs) which will be sent to the buyer for approval.
  • Once approved by the buyer, the FUs will be available to financiers for bidding.
  • Financiers will place their bids on the available factoring units.
  • The seller on accepting the most favourable bid will receive the amount within 48 hours.
  • Seller at the time of onboarding provides a letter of authority to the buyer to create pre-accepted factoring units on Invoicemart. Accordingly, the buyer creates factoring units (FUs) and in the event of the seller bearing the interest, the seller will have to approve the FUs.
  • The financiers shall bid against the factoring units (FU) and depending on who chooses to bear the interest, the buyer or the seller will select the bid.
  • The seller receives the amount within 48 hours of the acceptance of the bid.
In case the factoring unit (FU) doesn’t receive any bids, it will remain unfinanced on the platform. The buyer and the seller may choose to settle the payment directly, outside the platform.

In the rare case that no acceptable bids are received, the seller can choose not to accept the bid against the FU. In such a scenario, the FU will remain unfinanced on the platform.

To register, the seller needs to sign a one-time master agreement with A.TReDS Ltd, which operates the Invoicemart platform. No hassles of entering into multiple factoring agreements.

The key highlights include:

  • Transactions will be without recourse to the seller.
  • In case the interest is to be borne by the seller, the seller will have the right to accept/reject a bid.
  • Invoicemart shall debit the financier’s account for net factoring unit value (Factoring Unit amount minus financier’s charges) and credit the seller’s account on ‘T+1’/‘T+2’ day (‘T’ is the Bid Acceptance day) through National Payments Corporation of India.
  • On the due date, Invoicemart debits the buyer’s account for the factoring unit value and credits the financier’s account.

Yes. The seller is required to submit details of the working capital bank account as the proceeds will be credited to the account.

In case the seller doesn’t have a working capital relationship with any bank, the seller can provide the current account details.

In case the payment from the financier to the seller fails, the transaction will stand cancelled. The buyer needs to settle it outside the platform.

No. The seller doesn’t incur any repayment liability once the invoice is accepted by the buyer.

  • Onboarding
  • transactions
  • Agreement
  • settlement

It refers to banks, NBFC factors, and such other institutions as may be permitted by RBI from time to time to participate in the TReDS platform as Financiers.

A financial arrangement whereby a specialist finance company (the factor) purchases the debts of a firm for an amount less than the book value of those debts. The firm benefits by receiving immediate cash from the factor and avoids the trouble and expense of pursuing tardy debtors.

You could register on the Invoicemart platform in the following ways:

Contact the Financier Management Team from the given link

Or

By clicking here to commence registration.

It depends on the constitution of your entity. Please visit the Contact Us page to get in touch with our team.

The financiers shall bid for the factoring units (FUs) on the platform and make funds available for settlement.

You can choose to bid in multiple ways:

  • Bid for a single factoring unit (FU) by quoting rate of interest against each factoring unit on the Invoicemart platform.
  • Bulk bid in an offline mode by uploading excel sheet with bids against multiple factoring unit.
  • Auto bid by setting benchmark rate and variance against each buyer.
  • Invoicemart shall intimate the financiers when a buyer is on boarded and share the credit assessment, as done by partner credit rating agencies. The financier may also use their existing processes to assess the creditworthiness of a buyer.
  • Financier may also make use of live rating feed available against each buyer.
Yes, the financier needs to register the charge on receivables with CERSAI as per the existing practice.

No. The financier needs to enter into a one-time Master Agreement with A.TReDS Ltd to participate on the platform.

Yes. While the buyer has the right to pre-pay, the financier has the discretion to accept and negotiate terms with the buyer.

Once the factoring unit (FU) is accepted by the buyer, the buyer cannot extend the repayment period.

  • Invoicemart shall debit the financier’s account for net factoring unit value (Factoring Unit amount minus financier’s charges) and credit the seller’s account on ‘T+1’/‘T+2’ day (‘T’ is the Bid Acceptance day) through National Payments Corporation of India.
  • Invoicemart shall debit the buyer’s account with the factoring unit value and credit financier’s account on the due date.
  • For the purpose of automatic settlement, Invoicemart will obtain the buyer’s National Automated Clearing House (NACH) debit mandate during the onboarding process.

The 'Notice of Assignment' shall be sent to the corporate buyer electronically by Invoicemart upon settlement of funds by the financier to the MSME seller.

In the event of a delay/default in repayment by the buyer, the financier can initiate legal action against the buyer.

  • Can the buyer extend the repayment period?
  • Once the factoring unit (FU) is accepted by the buyer, the buyer cannot extend the repayment period.
  • Can the buyer pre-pay the financed amount?

Yes. While the buyer has the right to pre-pay, the financier has the discretion to accept and negotiate terms with the buyer.

Documents required:

  • Application Form
  • Master Agreement
  • NACH Mandate
  • Authority Letter for Assignment of Receivables
  • Accepted Fee Letter
  • All KYC documents of Entity
  • All KYC documents of Authorized Signatories.
  • All KYC documents of Entity Administrator
  • Board Resolution/POA/LOA
  • Processing Fee Cheque
  • Check list from RM
  • Adhaar No validation from UIDAI
  • Any Deviation Approval-Please Specify