It is estimated that over 80% of businesses shutting down are due to non receipt or delayed receipt payment problems. In businesses, a leading reason for cash flow problem is unpaid dues or delayed dues. Late payment can thus not only hurt the growth of a business and in some cases, threaten its very existence.
Most small business owners want their customer payments should come on time. When their customers delay payments, business owners, in turn, delay payment of their suppliers. And this leads to a chain reaction, a vicious cycle, – a vicious cycle that chokes the growth engine. And fixing this vicious cycle needs to be a top priority.
Delayed payments mean that MSMEs are usually struggling for liquidity, and this constrains their growth prospects. We decided to dig deeper into the real issues and come up with a solutions to delayed payments through BizBureau platform.
The growth and sustainability of MSME do contribute to the sustainable growth of the country; therefore, the Government of India tries to accelerate the growth of MSME by introducing various schemes for this sector. In spite of being an integral part of the sustainable development of the country, there exist enormous threats and challenges for the survival and growth of MSME. One of the biggest challenge is overdue payment related. MSMEs are not paid in time and they usually struggle for their dues. The current COVID-19 pandemic has hit the industry hard as lockdown leads to stoppage of operations resulting in stoppage of cash inflow to the firms. This has intensely impacted the availability of liquid funds to the business. Most MSMEs experience unavailability of timely capital and suffer from either shrinking of operations or liquefying the enterprise itself.
BizBureau by its efforts helping various MSMEs to recover their business overdues fast and get rid of one of their major problems. Hundreds of MSMEs already recovered their past overdues and hundreds of others are under process.