MSME Samadhaan– Way to recover pending dues from Customers by MSME Vendors

The Indian government has taken so many initiatives to protect the payments of registered Micro, Small or Medium Enterprises (MSMEs).

A company or any other entity who have registered themselves under MSME and facing problems to recover long pending dues from their customers may approach the MSME department to take action against them.Following process shall be followed by such MSMEs entity:

1. Register your company/LLP/Partnership etc. as an MSME and obtain a MSME certificate [Udyog Aadhaar Number (UAN)].

2. Keep record of all formal purchase orders from customers and delivery proofs for all orders.

3. On all your invoices, mention, “your entity name and UAN” along with a note that “Delayed payments beyond 45 days attracts interest at a rate three times of the bank rate notified by RBI, compounded with Monthly interest”.

4. If any customer delays your payments unreasonably beyond 45 days, inform them that you would be approaching the MSME Samadhaan for your pending payments if they do not make the payment in X days.

5. If they still do not release payment, file a complaint at www.samadhaan.msme.gov.in

6. The customer would receive a notice from Micro and Small Enterprise Facilitation Council (MSEFC) asking them to respond with compliance in specified time period (usually 15~30 days)