The correct option is: 2 only.

M1xchange primarily functions as a platform that facilitates the discounting of invoices and Bills of Exchange for Micro, Small, and Medium Enterprises (MSMEs), thus providing them with essential liquidity without requiring collateral. This model enhances access to finance for MSMEs, which often struggle with traditional banking due to inadequate credit histories or lack of tangible assets. The other statements regarding collateral-based loans and functioning as a credit rating agency are inaccurate, as M1xchange's focus is on invoice financing rather than traditional lending or credit rating services.