New Delhi, Sept. 22 -- Micro and small businesses will now find it easier to get money against unpaid invoices, with the government's credit guarantee cover for financing through the Trade Receivables Discounting System (TReDS) becoming operational.

The mechanism provides guarantee support to banks and other financiers lending against eligible invoices raised by micro and small enterprises, reducing their lending risk and potentially widening access to working capital for smaller businesses.

The measure was announced in the Union Budget 2026-27 as part of efforts to improve credit availability for MSMEs and has now been operationalised through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

"Extending CGTMSE-b...