Q. Which of the following statements about M1xchange's role in Micro, Small & Medium Enterprises (MSMEs) financing is/are correct?
1. M1xchange provides collateral based loans to MSMEs.
2. M1xchange facilitates discounting of invoices and Bills of Exchange for MSMEs.
3.M1xchange functions as a credit rating agency for MSMES.
Select the answer using the code given below:
(a) 1, 2 and 3
(b) 2 only
(c) 2 and 3 only
(d) 1 only

Answer : B

Explanation:

Statement 1 is not correct: M1xchange does not provide collateral-based loans. It is a TReDS (Trade Receivables Discounting System) platform — it facilitates invoice discounting without collateral. This is precisely its advantage for MSMEs who lack collateral for traditional loans.
Statement 2 is correct: M1xchange is one of the three RBI-licensed TReDS platforms in India. Its core function is facilitating the discounting of invoices and Bills of Exchange raised by MSMEs against large buyers (corporates/PSUs/government entities), enabling MSMEs to get early payment against their receivables.
Statement 3 is not correct: M1xchange is not a credit rating agency. It is a digital financing platform. Credit rating of MSMEs is done by SEBI-registered agencies like CRISIL, ICRA, CARE etc.

Source:

https://www.m1xchange.com/who-we-are/