Trade receivable discounting platform M1xchange has partnered with HDFC Bank to provide small businesses with more liquidity at competitive prices.

“HDFC Bank has partnered with M1xchange, promoted by Mynd Solutions Pvt Ltd, to debut on the Trade Receivables Discounting System (TReDs) platform. The move is expected to bring buy-side businesses and MSMEs at competitive liquidity rates higher interest rates,” said Tuesday’s press release.

The TReDS system, regulated by the Reserve Bank of India, enables Micro, Small, and Medium Enterprises (MSMEs) to auction their trade receivables online and borrow at the lowest interest rates from financial institutions that offer loans.

Sundeep Mohindru, MD & CEO, M1xchnage, said: HDFC Bank will benefit from the partnership with M1xchange to new-to-bank (NTB) corporate buyer relationships with shorter turnaround times and lower administration costs. Vijay Mulbagal, senior executive vice president of HDFC Bank, said: the partnership is expected to bring more liquidity and boost the adoption of TReDS by more corporate clients and MSMEs.