Delayed payments continue to constrain cash flows and hinder the growth ambitions of small businesses across the country, according to a “Indian SME Receivables Report 2026” released by Recordent, a credit risk and collections platform.The report that draws insights from nearly 1.1 lakh MSMEs and analyses more than 10 lakh transaction-level data points, found that while most businesses offer conservative and short credit periods, collections continue to be delayed and are beyond payment terms, leading to working capital pressures.A SME unit is carrying approximately ₹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.Indian SMEs take an average of 73 days to pay invoices and hence there is need for stronger receivables management, improved payment discipline, and better access to working capital.Though government regulations encourage payments to MSMEs within 45 days, businesses are extending relatively short credit periods. In fact, 82.6% of invoices are issued with credit terms of 0–30 days, indicating that the challenge lies not in credit policies but in payment discipline and collections efficiency, according to the report.Winny Patro, co-founder and CEO, Recordent, said, “Delayed payments continue to quietly erode the growth potential of MSMEs. The findings demonstrate that payment delays have evolved into a broader credit and cash-flow challenge that impacts business resilience, borrowing capacity, and long-term competitiveness. Greater transparency, stronger credit governance and wider adoption of receivables intelligence solutions can be a game changer.” Published - June 28, 2026 10:25 pm IST