Country’s first digital factoring platform TREDX goes live

Bangladesh's first-ever digital factoring marketplace TREDX has commenced its journey to provide supply chain finance services to small and medium enterprises (SMEs) and businessmen.

Think Big Solutions Limited, a fintech company, inaugurated the platform, Tredxonline, at a Gulshan hotel in the capital on Sunday, with an aim to bring several benefits to the country's factoring market.

At the opening event, Dr M Masrur Reaz, an economist and managing director of Think Big Solutions Ltd, said "This marketplace will be a new beginning for SMEs as supply chain finance is one of the major factors for them. Besides, the financial inclusion gap is still large in our country. We are pleased that the Bangladesh Bank officials accepted TREDX warmly." 

Masrur Reaz also thanked everyone including banks and financial institutions for joining the platform.

TREDX will bring financiers, corporates, and their suppliers onto a single platform to create a win-win-win value proposition. 

"The credit risk here is low but the operation risk is a little high. All banks and financial institutions will be on this open platform. This initiative will be successful, but it will take time. So, entrepreneurs have to be patient for some time, said Mominul Islam, the chairperson of Bangladesh Leasing and Finance Companies Association (BLFCA).

Association of Bankers, Bangladesh (ABB) Chairman Selim RF Hussain said, "The modes of supply chain management are changing due to Covid. TREDX will not only reduce suppliers' hassles but also give them the lowest rates. SMEs can reap benefits from this platform and boost."

Md Mezbaul Haque, director of the Payment Systems Department of Bangladesh Bank, said, "This marketplace will eliminate the problem of access to finance for SMEs. Banks and financial institutions can invest their idle money here. This will help their treasury management."

TREDX will facilitate online, real-time transactions between suppliers with approved invoices and financial institutions keen on discounting these invoices and reducing costs across the entire ecosystem for all parties involved. 

Abul Kasem Khan, chairman of Think Big Solutions and former president of Dhaka Chamber, said that SMEs can expand their businesses through this platform as it will be a better financing option for them.

Raja Debnath, co-founder and CEO of TREDX said, "Three such platforms have been operating in India since 2017. Experience has shown that the default rate on this platform is close to zero."