Delayed payments for small firms stifle economic growth https://indianexpress.com/article/opinion/columns/delayed-payments-for-small-firms-stifle-economic-growth-8018047/ July 9, 2022

Kinjal Sampat and Arun Singh write: For every day that a payment is delayed for credit-starved MSMEs, there is an erosion of value. If this issue is not addressed now, it will only add to the burden on these firms

The problem of delayed payments is a systematic one. It gives buyers an advantage that the economy cannot afford. On the other hand, small businesses and supplier firms have to work with a rising cost of capital due to delays and uncertainty in terms of planning business cycles. If this issue is not addressed now, it will only add to the burden on the MSMEs, working against the smaller supplier firms and crippling economic activity for the vast majority of entrepreneurs in the country.   The other types of costs incurred by such supplier firms include the time spent and the personnel costs employed to recover payments as well as the business forgone due to disrupted cash flows.