New Delhi, June 30 -- Delayed payments continue to adversely affect the cash flow and liquidity of micro, small and medium enterprises (MSMEs), but the Trade Receivables Discounting System (TReDS) has emerged as an effective mechanism to address the issue through invoice discounting according to MSME Secretary Bharat Khera.

"Delayed payments have a negative impact on MSME cash flow and create liquidity problems. TReDS has been a very successful model, and invoice discounting through the platform is a very good solution for delayed payments," Khera told ANI on the sidelines of CII's MSME Rise Summit 2026 on Tuesday.

Explaining how the platform works, Khera said financial institutions make advance payments as soon as invoices are uploaded...