Question

According to the TReDS process flow, what happens immediately after a Factoring Unit (F

Q: Answer-According to the TReDS process flow, what happens immediately after a Factoring Unit (FU) is created...

How does TReDS Work Broadly, following steps take place during financing discounting through TReDS Creation of a Factoring Unit FU - standard nomenclature used in TReDS for invoices or bills of exchange - containing details of invoices bills of exchange evidencing sale of goods services by the MSME sellers to the buyers on TReDS platform by the MSME seller in case of factoring or the buyer in case of reverse factoring Acceptance of the FU by the counterparty - buyer or the seller, as the case may be Bidding by financiers. Selection of best bid by the seller or the buyer, as the case may be Payment made by the financier of the selected bid to the MSME seller at the agreed rate of financing discounting. Payment by the buyer to the financier on the due date.