1 week ago
M1xchange Launches CGTMSE Guarantee Cover for MSME Receivables
M1xchange helps small businesses get money sooner for invoices they have issued but have not yet been paid.
It uses an online system called TReDS, where financiers can fund these invoices.
Now, eligible invoices from micro and small businesses can receive a guarantee from CGTMSE.
This guarantee gives participating financiers additional credit-risk support.
M1xchange has already completed its first transaction using the new cover.
Financiers can apply for the guarantee electronically through the platform.
The system also calculates the fee and creates the guarantee documents.
The initiative follows a Union Budget 2026-27 proposal to support invoice financing through TReDS.
M1xchange has launched CGTMSE guarantee cover for eligible micro and small enterprise receivables financed through its TReDS platform.
The platform said it completed its first transaction backed by the guarantee cover.
Financiers can check invoice eligibility, apply for cover, calculate guarantee fees and receive guarantee documents through API-based integration.
The initiative follows the Union Budget 2026-27 proposal for credit guarantee support for TReDS-based invoice discounting.
M1xchange said its ecosystem includes more than 81 banks, 15,000 corporates and 1.1 lakh MSMEs.
- Who
- M1xchange, the Credit Guarantee Fund Trust for Micro and Small Enterprises, financiers, and eligible micro and small enterprises.
- What
- The launch of CGTMSE guarantee cover for eligible receivables financed through M1xchange's TReDS platform.
- Where
- On the M1xchange TReDS platform.
- When
- The launch follows the Union Budget 2026-27 announcement; the articles do not state an exact launch date.
- Why
- To provide additional credit-risk support to financiers and help eligible micro and small enterprises obtain financing against receivables.
Key facts
- Platform
- M1xchange, a Trade Receivables Discounting System platform
- Guarantee provider
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- First transaction
- M1xchange said it completed its first transaction backed by CGTMSE guarantee cover
- Technology
- The integration uses application programming interfaces
- Ecosystem
- More than 81 banks, 15,000 corporates and 1.1 lakh MSMEs
- Platform volume
- M1xchange said it has facilitated invoice discounting of more than ₹3.6 lakh crore
- Budget link
- The Union Budget 2026-27 proposed credit guarantee support for TReDS invoice discounting
Sources
Related news
BRICS Endorses Easier Finance and Invoice Discounting for MSMEs
Cabinet May Approve ₹10,000 Crore SME Growth Fund
New UPI MDR Framework Sets Merchant Fees From October 15
RBI Governor Says FinTechs Are Closing India’s MSME Credit Gap
UPI MDR GST Impact Expected to Remain Minimal
Government says UPI MDR aims for sustainability, competition, not pressure
India Ministries Sign Udyam Data Pact to Strengthen Business Statistics
Former Grameen Bank Manager Booked Over PMEGP Fund Diversion
Gujarat Begins GIS Mapping of Manufacturing MSME Units
How Coir Is Transforming Rural Livelihoods Across India
