Accounts Receivable: Getting Paid Faster as an MSME

Getting paid on time is a skill. Invoicing discipline, clear terms, and systematic follow-up can reduce your Days Sales Outstanding (DSO) and improve working capital. Here's how.

Invoice Immediately

Send the invoice within 24 hours of delivery or service completion. Delayed invoicing means delayed payment. Include PO number, payment terms, bank details, and GSTIN. Make it easy for the buyer to process.

Set Clear Payment Terms

Net 30, Net 45, or 2/10 Net 30—state it clearly. Put it on the invoice, in the contract, and in reminders. Consider early payment discounts: 2% for payment within 10 days can incentivise faster settlement.

Age Your Receivables

Run an aging report weekly: 0–30 days, 31–60, 61–90, 90+. Focus on 60+ first—they're at risk of becoming bad debt. Prioritise by amount and age. One overdue ₹5L invoice matters more than five ₹20K ones.

Follow-Up Cadence

• •Day 1 after due: Polite reminder email
• •Day 7: Phone call + email
• •Day 15: Escalate to senior contact if needed
• •Day 30: Formal notice, consider holding supplies

Document Everything

Log calls, emails, and promises. If a dispute arises, you have a trail. For large amounts, get payment plans in writing. Verbal agreements are hard to enforce.

Use Technology

AR software tracks aging, sends automated reminders, and flags at-risk accounts. ReckOps and similar tools integrate with your books so you always have an up-to-date view.

Faster collections mean less borrowing, better cash flow, and healthier growth. It's worth the discipline.