The country's first-ever digital factoring marketplace - TREDX - formally began its journey at a function in a city hotel on Sunday - to leverage technology in delivering supply chain financing solutions to millions of SMEs.
TREDX, brought in by Thinkbig Solutions Limited, catalyses innovative fintech solutions to bring together SMEs, banks, financial institutions, corporates and their suppliers to facilitate faster, safer and more competitive access to supply chain finance.
The central bank issued guidelines for digital factoring in this January. Abul Kasem Khan, Dr M Masrur Reaz and Raja Debnath are three co-founders of TREDX.
"The initiative marks a new beginning for Bangladesh's SMEs by leveraging technology in delivering supply chain financing solutions to millions of SMEs," said Dr Masrur Reaz, Managing Director of ThinkBig Solutions Ltd.
He said it would 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.
Chairman of TREDX Abul Kashem Khan said the platform would enable SMEs to expand more.
Speaking at the function, Payment Systems Director of Bangladesh Bank Mezbaul Haque said the success of the platform largely depends of the players in it, including banks, suppliers and financial institutions.
He said the central bank, thinking to launch secondary market of factoring marketplace, would observe its success.
Chairman of Association of Bankers, Bangladesh Selim R F Hussain said supply chain financing is not that much (available) in the country due to lack of interest of banks in the sector.
He opined that TREDX is really a very good start in the sector.
Bangladesh Leasing and Finance Companies Association Chairman Mominul Islam said the supply chain financing - to be provided from the platform - is collateral free, cheaper and easier.
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