Delayed Payments Push Average Overdue Receivables of Indian SMEs to Rs 3.83 Cr: Recordent Report
Hyderabad, June 27 (TNT): Indian micro, small and medium enterprises (MSMEs) are grappling with mounting working capital stress, with average overdue receivables crossing ₹3.83 crore, according to the Indian SME Receivables Report 2026 released by credit risk and collections platform Recordent on World MSME Day here on Saturday.
The report, based on an analysis of over 10 lakh transaction-level data points from nearly 1.1 lakh MSMEs, highlights persistent payment delays despite businesses offering relatively short credit periods.
According to the study, the average MSME has about ₹3.83 crore worth of receivables pending for more than 360 days, affecting liquidity, cash flow and financial stability.
It also found that Indian MSMEs take an average of 73 days to receive invoice payments, well beyond the credit terms offered by most businesses.
The report noted that while government regulations encourage payments to MSMEs within 45 days, as many as 82.6 per cent of invoices are issued with credit periods of 30 days or less, indicating that poor payment discipline rather than liberal credit policies is the primary cause of delayed collections.
Among the key findings, the report said payment behaviour varies significantly across industries, cities and business categories, underscoring the need for sector-specific receivables management strategies.
Among metropolitan cities, Mumbai recorded the fastest average invoice settlement period at 59 days, compared with the national average of 73 days.
Recordent Founder and Chief Executive Officer Winny Patro said delayed payments have evolved into a larger credit and cash-flow challenge that impacts business resilience, borrowing capacity and long-term competitiveness.
He said greater transparency, stronger credit governance and wider adoption of receivables intelligence solutions could significantly improve payment discipline and unlock working capital for MSMEs without increasing borrowings.
The report noted that MSMEs contribute nearly 30 per cent to India’s GDP, account for 48 per cent of exports and are the country’s second-largest employer after agriculture.
It stressed that improving receivables performance and ensuring faster payments would be critical to sustaining growth, enhancing productivity and fostering entrepreneurship as India advances towards becoming a $5-trillion economy.
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