Frequently Asked Questions (FAQs)
Why do customers delay payments?
There can be a few reasons: They forgot or misplaced the invoice. There’s a dispute over the work or delivery. Their internal payment process is slow. They might be facing financial issues. Clear payment terms and regular reminders can help reduce delays.
How can I avoid late payments?
Set clear due dates from the start. Send automated reminders before and after the due date. Offer a small discount for early payments. Communicate openly with your clients. These steps help keep cash coming in smoothly.
What is invoice factoring?
Invoice factoring means selling your unpaid invoices to a company. They’ll pay you most of the amount right away and then collect the full payment from your customer. It’s a quick way to get cash without waiting around.
How does invoice factoring help my business?
It gives you: Quick cash in hand. No need to chase clients for payment. More time to focus on your business, not collections. Flexibility—you choose which invoices to factor. Great for improving cash flow when payments are stuck.
Are there any drawbacks to invoice factoring?
There are some service fees. If not managed well, it might affect customer relationships. Not all invoices may qualify. Make sure to weigh the pros and cons before deciding.
What is the MSME Samadhaan scheme?
It’s a government platform that helps small businesses (MSMEs) get payments that are overdue from clients. You can file a complaint online and get legal help to recover your money.
Who can use the MSME Samadhaan portal?
If you’re a registered Micro or Small Enterprise with a Udyam Registration Number, you’re eligible to file complaints for late payments.
How do I file a complaint on the MSME Samadhaan portal?
Go to samadhaan.msme.gov.in. Register using your Udyam number. Fill in the complaint form with payment and invoice details. Upload relevant documents like work orders or invoices. Submit and track your complaint online. It’s free, and the process is quite simple.
Does it cost anything to file a complaint?
Nope! It’s completely free to file a complaint on the Samadhaan portal.
What happens if a client still doesn’t pay?
Under the law, if a client doesn’t pay within 45 days, they may have to pay interest at 3 times the bank rate. This rule helps ensure MSMEs are treated fairly.
