Module: General Practice
Q39: Regarding the "TReDS" (Trade Receivables Discounting System) platform, identify the INCORRECT statement:
✅ Correct Answer: B
TReDS supports both factoring (where the seller initiates the upload) and reverse factoring (where the buyer initiates the upload). It is not restricted to only reverse factoring.
A crucial benefit of TReDS (Option C) is that the financing is Without Recourse to the MSME.
Once the financier accepts the invoice (which was accepted by the corporate buyer), the MSME gets paid and is absolved of risk.
The financier takes the risk on the buyer.
A crucial benefit of TReDS (Option C) is that the financing is Without Recourse to the MSME.
Once the financier accepts the invoice (which was accepted by the corporate buyer), the MSME gets paid and is absolved of risk.
The financier takes the risk on the buyer.