Indian SMEs Average Rs 3.83 Crore In Overdue Receivables, Recordent Report Shows

HYDERABAD — A new national study released in Hyderabad on Saturday, June 27, 2026, has revealed that Indian Micro, Small, and Medium Enterprises (MSMEs) are facing severe financial strain due to chronic delays in payments from their clients.

The 'Indian SME Receivables Report 2026' was launched on World MSME Day by Recordent, a credit risk and collections platform. The comprehensive study analysed more than 10 lakh transaction-level data points from nearly 1.1 lakh MSMEs across India to map payment behaviour, credit practices, and receivables management.

According to the report's findings, the average Indian small and medium enterprise (SME) is currently carrying approximately Rs 3.83 crore in receivables that have remained unpaid for more than 360 days. This massive volume of locked-up capital severely impacts business liquidity and financial stability. Additionally, the analysis found that Indian SMEs take an average of 73 days to settle their invoices.

This payment delay occurs despite a conservative approach to credit. The report highlighted a striking contradiction in the country's MSME ecosystem: while most small businesses offer short and conservative credit periods to their clients, actual collections are routinely delayed far beyond the agreed-upon terms, creating severe working capital pressures.

The financial health of these enterprises is critical to the broader national economy. MSMEs contribute 30 per cent to India's Gross Domestic Product (GDP) and account for 48 per cent of the country's exports. Furthermore, the sector stands as India's second-largest employer, trailing only the agricultural sector.

Winny Patro, the Founder and CEO of Recordent, stated that while MSMEs form the backbone of India's economy, delayed payments continue to quietly erode their growth potential. The newly released report is a first-of-its-kind national study aimed at providing a comprehensive view of payment behaviour to address the ongoing cash flow constraints that hinder the growth ambitions of small businesses.