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