Recovery
Buyer payment delays reduce MSMEs’ cash flow and complicate their working capital. It also restricts government loans and credits. It becomes difficult for the company or business to pay adequate salaries or wages to employees and labourers.
To maintain financial stability, most business owners mortgage their homes and factories. While some business owners are predisposed to mental illnesses such as stress, depression, and so on. If payment dues are not recovered quickly, MSMEs will lose market presence due to unproductive work, fewer sales, and lower profits.
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Our Process
MSME Recovery
Buyer payment delays reduce MSMEs’ cash flow and complicate their working capital. It also restricts government loans and credits. It becomes difficult for the company or business to pay adequate salaries or wages to employees and labourers.
To maintain financial stability, most business owners mortgage their homes and factories. While some business owners are predisposed to mental illnesses such as stress, depression, and so on. If payment dues are not recovered quickly, MSMEs will lose market presence due to unproductive work, fewer sales, and lower profits.
- Completed application form with passport-sized photos
- KYC documents for the applicant and co-applicants, which include a passport, an Aadhar card, a voter ID card, a driving licence, a PAN card, and utility bills (telephone and electricity bills).
- Company Address and Vintage Proofs
- Bank statement from the previous six months, along with bank information
- Certificate of Business Establishment or Letter of Incorporation
- Proof of membership in the SC/ST or OBC categories, if applicable.
- Any additional documentation required by the bank/NBFC
- Section 18 of the MSME Act states that if the buyer fails to pay the principal amount of dues or the interest arising thereon as required by Section 16 of the MSME Act, the supplier may file a complaint with the Micro and Small Enterprises Facilitation Council (MSEFC). The Government of India has established the MSME Samadhan portal to facilitate the filing of such complaints.
- As a first step, the MSEFC will initiate conciliation proceedings to resolve the buyer-supplier dispute. If the conciliation proceedings fail and there is no agreement reached between the buyer and seller, arbitration proceedings are initiated to resolve the dispute. The provisions of the Arbitration and Conciliation Act of 1996 govern such arbitration proceedings.
MSME department examines the application
- The MSME department will examine the application filed by the MSME unit, and if the application is complete in all respects, the department will issue directions to the buyer unit for payment of the due amount, plus interest, in accordance with the provisions of the MSMED Act 2006.