MUMBAI: Delayed payments are putting working capital stress on MSMEs, with average overdue receivables beyond 360 days at around Rs 3.8 crore per firm and a national invoice payment cycle of 73 days, even as 82.6% of invoices are issued with credit periods of 0 to 30 days, a report noted. The Indian SME Receivables Report 2026 is based on data from around 1.1 lakh MSMEs and over 1 million transactions. Recordent said payment delays persist despite SMEs offering short credit periods, pointing to structural inefficiencies in collections and payment discipline. MSMEs contribute around 30% to India’s GDP, account for 48% of exports, and remain the second-largest employer after agriculture. Average overdue receivables beyond 360 days reflect a large volume of locked-up capital, while the 73-day payment cycle exceeds typical credit terms and highlights the gap between invoicing and cash realisation. Regulatory guidelines recommend payments to MSMEs within 45 days, but actual timelines continue to exceed this threshold. The report identifies late payments as a key constraint on MSME liquidity, growth, and financial stability. Improved receivables management and payment discipline can unlock liquidity without additional borrowing, it notes.
