MUFG Bank has partnered with M1xchange to offer digital invoice financing to the bank‘s clients. MSME Suppliers receive early funding for their receivables through a bidding mechanism under M1xchange‘s TReDS (Trade Receivables Discounting System), which is funded by MUFG Bank, which assumes the credit risk of corporate buyers. This collaboration enables MUFG Bank to leverage M1xchange‘s digital ecosystem, enhancing the efficiency of its client services.Rohit Narayanan, Director and Head, Transaction Banking, MUFG India, said: “The collaboration with M1xchange demonstrates MUFG’s commitment to meet the growing trade finance needs of the industry. With this partnership we are able to offer digital trade solutions to our clients, while adding value to MSME enterprises which are the end users of this supply chain.”“This collaboration is another noteworthy step forward in the provision of financing to MSME and micro-category businesses. Shorter turnaround time and lower administrative costs would enable MUFG Bank to expand digital invoice finance offering in India”, added Sundeep Mohindru, Managing Director & CEO of M1xchange.
