Delayed Payments
: The Cash Flow Crunch for MSMEs
60%
of MSMEs in India experience delayed payments
Government Steps In:
Timely Payments for MSMEs
Effective
April 1st, 2024
, companies must pay MSMEs within
45 days
Don't Be Late:
Penalties for Delayed Payments
Late payments lead to
tax disallowances
for the buyer company
Another penalty:
Compound interest
on the outstanding amount at a rate of
3 times the RBI bank rate
And will be -
Mandatory filing
of a report with the Registrar of Companies explaining the delay
Timely Payments:
A Lifeline for MSMEs
Faster payments can increase MSME
revenue by
up to 20%
Explore more about
New Payment Terms for MSMEs
Click here >