Once the bid is accepted by the seller or buyer whoever is the cost bearer, the designated bank account of the Financier will be auto-debited based on the mandated provided by them on T+1 (Bid acceptance date = 1 working day) and RXIL to strive to make the payment to the designated account of the Seller on T+1.

Similarly, on the final due date, the designated bank account of the Buyer will be auto-debited and the payment will be made to the Financier in its designated bank account on the same day or next day.

The Buyer shall repay the obligation to the financier on the due date of the factored invoice which shall be goods acceptance date plus credit period. If the due date falls on a holiday, the obligations need to be settled on the preceding working day.

The Buyer shall provide debit mandate to RXIL at the time of registration.The designated bank account of the Buyer on TReDS platform will be auto-debited for the purpose of crediting the obligations to the designated bank account of the Financier.

If the payment from Financier to Seller fails, the factoring unit will be marked as Failed on the TReDS portal of RXIL. In such circumstance, the Buyer needs to pay to the Seller directly on the due date outside the system.

There is also a provision for the Seller or the Buyer to re-initiate auction in such cases.

Non-payment by the Buyer on the due date to the Financier is tantamount to a default by the Buyer. The transaction is marked as Failed in the TReDS platform. The Buyer is required to settle directly with the Financier.