Indian MSMEs face mounting delayed payments, recordent report reveals

Released on World MSME Day, Recordent's Indian SME Receivables Report 2026 reveals that delayed payments continue to strain India's MSMEs. The study found that the average SME has Rs 3.83 crore in receivables pending for over 360 days and takes 73 days to settle invoices.

Hyderabad: Marking World MSME Day, Recordent, a leading credit risk and collections platform, released the Indian SME Receivables Report 2026, a first-of-its-kind national study that provides a comprehensive view of payment behaviour, receivables management, and credit practices across India’s micro, small and medium enterprises (MSMEs).

Drawing insights from nearly 1.1 lakh MSMEs and analysing more than 10 lakh transaction-level data points, the report uncovers the growing burden of delayed payments that continues to constrain cash flows and hinder the growth ambitions of small businesses across the country. MSMEs contribute 30 per cent to India’s GDP, account for 48 per cent of exports, and are the second-largest employer after agriculture.

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The findings reveal a striking contradiction in India’s MSME ecosystem, while most businesses offer conservative and short credit periods, collections continue to be delayed well beyond agreed payment terms, resulting in severe working capital pressures.

According to the report, the SME is carrying an average of approximately Rs 3.83 crore worth of receivables that remain unpaid for more than 360 days, underscoring the scale of locked-up capital affecting business liquidity and financial stability. Recordent’s analysis also found that Indian SMEs take an average of 73 days to pay invoices.

Winny Patro, Founder and CEO-Recordent, said, “MSMEs form the backbone of India’s economy, yet delayed payments continue to quietly erode their growth potential.”