2 Government Platforms To Tackle Delayed MSME Payments

Preventing Delayed Payments to MSMEs

Have delayed vendor/supplier payments been a cause of worry for your business? According to a National Payments Survey, delayed MSME payments are the second biggest challenge.

To address this, the government introduced a new platform(s) that helps MSMEs to track payments and bills online.

These platforms will allow small businesses to:

  • Register cases relating to delayed payments by government bodies
  • monitor delayed payment MSME
  • facilitate discounting of bills and invoices of MSME suppliers

Delayed payment MSME rose from 8.61% to 9.5% in just 6 years. Here are the two platforms that you can start registering and monitoring delayed MSME payment.

1. MSME Samadhaan

The MSME Samadhaan is an online portal that takes care of delayed payments to MSMEs. With this platform, a small business can register delayed payment complaints and even gain interest on late payments.

Here, MSMEs can register their invoices and if buyers fail to make payments within 45 days, they have to pay compound interest with the monthly rates to the supplier/business.

The interest amount will be at three times the bank rate notified by RBI.

 

delayed MSME payments

2. TREDs Platform

The Trade Receivables Discounting System (TReDS) is an online platform to facilitate the discounting of bills and invoices of MSME suppliers. The platform helps MSMEs get their payments faster. The platform also has a lower annual interest payout for SMEs.  Here’s how TREDS platform works:

Delayed Payment to MSME

 

Other measures to tackle delayed payments to MSMEs:

Besides these schemes, the RBI has proposed setting up a section on the Government platform that allows MSMEs to set up an information utility where all MSMEs have to mandatorily upload their invoices above a certain amount. This would help automatically generate details of defaulters.

Take care of your cash flow:

Keeping a positive cash flow for your business is imperative. Over 80% of small businesses face financial strain due to poor cash flow. Keeping a good flow of cash coming in helps you tackle any delayed payments with ease. This way, you need not rely solely on vendor payments to keep your business running.

Click on the image below to get our free ebook on how your business can maintain a good working capital for your business.

With Instamojo, you need not worry about delayed payment. The Instamojo faster payouts feature guarantees money in your bank account immediately!


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