Think Big Solutions offers the TREDX digital platform
Bangladesh-based fintech Think Big Solutions is now offering a digital factoring platform to provide financing solutions to small businesses, a news article announced on Sunday (July 31).
TREDX aims to unite small businesses, financial institutions (FIs), corporations and suppliers to create an online marketplace, TREDXonline, for digital invoices. TREDX will facilitate digital factoring, i.e. real-time transactions selling approved invoices from small and medium-sized enterprises (SMEs) to FIs at a discount.
According to Ms. Masrur Reaz, Managing Director of Think Big, SMEs account for about a quarter of the country’s gross domestic product. But many of them have limited access to formal finance.
Reaz said the idea was to make it easier to access credit, since many don’t have much collateral, but also have working capital tied to bills payable by large companies.
“Thus, factoring as a product is best suited to meet the needs of SME suppliers, where factoring companies and banks could have reduced their approved invoices and provided suppliers with much-needed liquidity,” did he declare.
See also: Built-in options make it easy to track supply chain finance programs
Recently, US-based companies were required by the Financial Accounting Standards Board to disclose details of supply chain finance programs.
Businesses will now be required to report outstanding balances related to programs and the terms of financing agreements.
The rule was proposed last December and will go into effect early next year. He will address the fact that clearer accounting would shed light on the effects of programs on capital and cash flow.
The programs provide a lifeline for suppliers, in which payment agreements can help buyers pay suppliers with third-party financing and sooner than usual.
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