Tamil Nadu Trade Receivables Discounting System (TN TReDS): A Profit Multiplier for Micro, Small & Medium Enterprises (MSMEs)

Tamil Nadu Trade Receivable Discounting System (TN TReDS) was an invoice discounting mechanism established by the State Government of Tamil Nadu in India to facilitate timely payment for supplies made by the Micro, Small and Medium Enterprises (MSMEs).This study is qualitative in nature and both primary data & secondary data were used.The study reveals that TN TReDS provides a collateralfree working capital, through competitive finance, to MSMEs.TN TReDS creates cost advantages to MSMEs which helps them to multiply their profit and improve the financial position.And the Reserve Bank's positive move will further strengthen this system.