What Is the MSME Facilitation Council and How Can It Help Me Get Paid?
Quick answer: The MSME Facilitation Council (MSEFC) is a state-level body created specifically to resolve delayed-payment disputes of Micro and Small enterprises. Think of it as a fast-track forum that combines settlement talks and arbitration in one continuous process, aims to decide cases within 90 days, and can award you your full dues plus compound […]
Read MoreHow Do I File a Complaint Against a Buyer Who Isn’t Paying Me?
Quick answer: You file online, through the government’s MSME dispute portal, which routes your case to your state’s MSME Facilitation Council. No court, no heavy fees, and you can do the filing yourself — though professional help is advisable for high-value or genuinely disputed cases. The process starts with an automated notice to the buyer, […]
Read MoreDo I Need a Written Agreement to Claim the MSME 45-Day Payment Protection?
Quick answer: No. Even with zero paperwork — no contract, no purchase order, nothing signed — a registered Micro or Small enterprise is protected. Without a written agreement, the buyer must pay within 15 days of acceptance. A written agreement can extend that, but only up to 45 days, never more. The surprising truth: no […]
Read MoreWhat Is “Deemed Acceptance” and Why Does It Matter for Late Payments?
Last updated: July 2026 Quick answer: “Deemed acceptance” means that if a buyer receives your goods or services and raises no written objection within 15 days, the law treats the delivery as accepted as of the day of delivery itself — automatically, even if the buyer never said a word. It matters because your payment […]
Read MoreFrom Which Date Does the 45-Day Payment Clock Actually Start?
Quick answer: Not from your invoice date. The clock starts from the date of ‘acceptance’ of your goods or services — and if the buyer raises no written objection within 15 days of delivery, the law treats the delivery date itself as the date of acceptance. Getting this date right decides when payment is due […]
Read MoreIs a 90-Day Payment Agreement With an MSME Supplier Valid in India?
Quick answer: No — not beyond 45 days. Even if the supplier signed it willingly, a payment term of 60, 90 or 120 days with a registered Micro or Small enterprise is enforceable only up to 45 days. Beyond that, the law treats the extra credit period as if it was never agreed, and interest […]
Read MoreHow Much Interest Can I Charge a Buyer Who Is Late in Paying Me?
Quick answer: The law fixes it for you: 3 times the RBI bank rate, compounded with monthly rests. For example, at an RBI bank rate of 5.50%, that works out to 16.50% per year — and because it compounds every month, the effective cost to the buyer is even higher. Always verify the bank rate […]
Read MoreWhat Happens If a Company Doesn’t Pay My Small Business on Time?
Quick answer: Once a buyer crosses the legal payment deadline (maximum 45 days), three consequences begin automatically: they owe you compound interest at three times the RBI bank rate (roughly 16.5% a year when the bank rate is 5.50%), they lose the ability to claim that expense in their tax return until they actually pay […]
Read MoreCan a Buyer Legally Delay Paying an MSME Beyond 45 Days?
Quick answer: No. If you are a registered Micro or Small enterprise, Indian law caps the payment period at 45 days — even if both sides signed an agreement saying 60, 90 or 120 days. Any clause stretching payment beyond 45 days is simply not enforceable against you, and once the deadline passes, the buyer […]
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