N.Srinivasan
Quick Summary
In my opinion, the major problem that affects the MSME is the collection aspect of the Invoice made for Service or Supply or Service Supply. Timely realization of the trade receivables is the main cause of MSME units failures and losses. Central Governments initiative of samadhan.msme.gov.in is
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FAQ :
The major problem affecting MSMEs is the timely collection of payments for invoices issued for services or goods supplied. Delayed realisation of trade receivables is a primary cause of MSME failures and losses.
NMBPP is a suggested Central Government initiative to create an authority and a portal for the quick processing of MSME bills, aiming to resolve payment delays and provide factoring-like benefits.
MSMEs registered under 'Udyam' are eligible to register on the portal. Individual accounts will be opened for these MSME entities.
Upon invoice upload by the seller, the portal automatically forwards details to the buyer. The buyer can then make payments directly to the NMBPP, with provisions for deductions if necessary.
MSMEs can receive factoring-like benefits, avoid cumbersome bank loans, increase their working cycle and production, and benefit from a significant increase in GDP and growth, while also being saved from interest burden and agony.
If an invoice is rejected for payment due to technical reasons, the seller must repay the 85% payment released within 60 days. Failure to do so will result in the removal of their membership from the portal.
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