Over 50% Of B2B Payments Overdue In Major Indian Cities: Recordent Survey

ENA MSME 2024-08-21 13:16:55 New Delhi, Aug 21 (KNN) A recent survey conducted by Recordent, a credit and payments reporting platform for B2B transactions, has shed light on significant variations in payment behaviours across major Indian business hubs. The study, which analysed data from over 2,800 Recordent member businesses during the fiscal years 2021-2023, reveals concerning trends in payment delays and collection efficiency. According to the survey, 52 per cent of B2B payments in key cities such as Hyderabad, Kolkata, Chennai, and Pune remain overdue for more than 90 days. In contrast, Mumbai demonstrated better payment practices, with only 29 per cent of payments falling into this category. Other metropolitan areas, including Bengaluru, Delhi NCR, and Ahmedabad, reported overdue rates ranging from 42 per cent to 49 per cent for payments exceeding the 90-day mark. The study also highlighted disparities in timely payment collection. Mumbai and Ahmedabad led with 36 per cent and 38 per cent of trade receivables collected on schedule, respectively. However, Chennai, Pune, and Hyderabad lagged significantly behind, with only 18 per cent, 19 per cent, and 22 per cent of payments received on time, respectively. Winny Patro, CEO and Co-founder, Recordent, commented on the findings, stating, The survey provides valuable insights into the payment dynamics across major Indian cities, underscoring the challenges faced by MSMEs and SMEs. Businesses are increasingly looking for transformational tools that can streamline collections management, helping to overcome these challenges, he further added. These findings come in the context of recent government initiatives to support stressed MSME loan accounts. In her July budget speech, Finance Minister Nirmala Sitharaman announced plans for credit provision through a government-promoted fund guarantee, aimed at helping struggling MSMEs maintain operations and avoid non-performing asset (NPA) status. Despite these challenges, there are signs of improvement in the MSME sector. Gross non-performing assets in MSME loans by scheduled commercial banks decreased to Rs 1.31 lakh crore in FY23 from Rs 1.54 lakh crore in FY22. This figure represents the lowest level of MSME GNPAs in the past five years, down from a peak of Rs 1.83 lakh crore in FY20. The survey's results underscore the ongoing need for improved financial management and support mechanisms within India's B2B ecosystem, particularly for small and medium-sized enterprises facing payment collection challenges. (KNN Bureau) 39016 https://knnindia.co.in/news/newsdetails/msme/over-50-of-b2b-payments-overdue-in-major-indian-cities-recordent-survey 2024-08-21 13:16:55 knnindia.co.in Over 50% Of B2B Payments Overdue In Major Indian Cities: Recordent Survey