A Seller is a Micro, Small and Medium Enterprises (MSMEs) who supplies goods and / or services to the buyers.
Yes, if you're an MSME as per the MSMED Act, 2006, you are eligible to register on the platform. However, you must be referred by a buyer to participate on Invoicemart.
MSMEs are defined under the MSMED Act, 2006 on the basis of the gross investment in plant & machinery and / or equipment.
|Definition as per MSMED Act, 2006|
|Manufacturing (investment in plant and machinery)||Services (investment in equipment)|
|Micro||Up to Rs. 25 lakh||Up to Rs. 10 lakh|
|Small||Between Rs. 25 lakh and up to Rs. 5 cr.||Between Rs. 10 lakh and up to Rs. 2 cr.|
|Medium||Between Rs. 5 cr. and up to Rs. 10 cr.||Between Rs. 2 cr and up to Rs. 5 cr.|
Yes. Since your invoices have to be accepted by the buyer to be eligible for factoring, you can participate on the platform only if your buyer refers you.
It depends on the constitution of your entity. Please visit ‘Contact Us’ page to get in touch with our Team.
You need to enter into a single Master Agreement with TREDS, which shall state the terms and conditions of dealings between both the entities.
The key highlights of the agreement are as follows:
- Transactions will be without recourse to the seller ;
- In case the interest is to be borne by you, you will have the right to accept / reject a bid at your discretion.
- You have to upload invoices and fill relevant details to create a factoring unit (FU); these will be sent to the buyer for approval;
- Once approved by the buyer, the FUs will be sent to financiers for bidding; these bids will be visible to you once the bidding window closes;
- You may accept a bid that’s most favourable to you;
- You will receive the sum from the financier within 48 hours.
- In this case, your buyer will create pre-approved factoring units if the buyer decides to pay interest; in case you decide to bear interest, you will have to approve the factoring unit
- The financiers shall bid against the FU; you or the buyer will select a bid, depending on who chooses to bear the interest;
- You will receive the sum from the financier within 48 hours of acceptance of bid.
In case your FU doesn’t get a single bid, it will remain unfinanced on the platform. In this case, the buyer and seller will settle the payment directly, outside the platform.
In the rare case that you don’t find a single bid acceptable, you may choose not to accept the bid against the FU, in which case it will remain unfinanced on the platform.
- Invoicemart shall debit the financier's account for net value (post deduction of the financier's charges) and credit your settlement account on ‘T+1’/ ‘T+2’ day ('T' is the Bid Acceptance day) through NPCI.
- Invoicemart shall debit the buyer’s account for the invoice value and credit financier’s account on the due date.
Yes, you need to submit details of your working capital bank account since that’s where the proceeds shall be credited.
In case the payment from the financier to the seller fails, the transaction will stand cancelled. The buyer needs to pay the seller directly (outside the system).
In case you do not have a working capital relationship with any bank, you may provide your current account details.
No. The transaction is without recourse to the seller, which means you have no repayment liability once the invoice is accepted for payment by the buyer. The same will be settled bilaterally between the financier and the corporate buyer.