CRACKING THE CODE TO MSMES PAYMENT DEFAULTERS WITH CREDITQ Presented By: CreditQ INTRODUCTION MSMEs' Payment Defaulter cases are steadily increasing due to frequent delays in buyer payments, which directly affect small businesses' cash flow. To address the growing MSMEs Payment Defaulters, CreditQ provides comprehensive MSME Settlement and Credit Report services. These solutions help MSMEs manage default risks effectively, restore their business credibility, and maintain stronger financial stability for sustainable growth. MSMES IN INDIA – IMPORTANCE & CHALLENGES Importance of MSMEs in India With over 63 million registered units, MSMEs form the backbone of India’s economy. They contribute nearly 30% of GDP, create jobs, support exports, and drive growth across manufacturing, trade, and services. Challenges Faced by MSMEs MSMEs struggle with limited access to credit, delayed payments from clients or buyers, and a lack of proper credit history. These issues weaken cash flows, restrict growth, and impact long-term sustainability. WHAT IS AN MSME PAYMENT DEFAULTER? 01 02 03 04 Definition An MSME becomes a payment defaulter when it does not receive payments for goods or services delivered within the agreed terms. Impact on Cash Flow Unpaid dues block working capital and affect day-to-day operations. Credit Score Damage Defaults weaken the MSME’s creditworthiness, making future borrowing difficult. Higher Credit Costs Poor credit history increases the cost of loans and financing. CREDITQ’S MSME SETTLEMENT SOLUTION Credit Information Report: Gives insights into credit behavior, supporting MSMEs during negotiations, and improving transparency. Defaulter Reporting: Allows MSMEs to report clients delaying payments, ensuring accountability. Simple Registration Process: Easy onboarding for MSMEs to access settlement and reporting benefits. Improved Credibility: Enhances trust, helping MSMEs build stronger credit profiles and access loans. KEY FEATURES & BENEFITS OF CREDITQ MSME SOLUTION Benefit Feature Credit Information Report Helps track credit behavior, becomes evidence in settlement Defaulter Reporting Brings defaulting buyers/clients into notice; adds pressure / negotiations. accountability. Streamlined Registration / Process Simplifies MSME registration to access benefits. Improved Credibility / Access to Credit Better credit history helps in loans, partnerships. PROCESS FLOW: FROM DEFAULT TO SETTLEMENT Report Default MSME raises issue with delayed payment via CreditQ. Credit Assessment Engagement / Negotiation Settlement & Closure CreditQ generates the credit information / score. Contact defaulter, propose settlement terms. Once settled, update in the credit bureau/report. CONCLUSION MSMEs Payment Defaulter issues create serious risks for small businesses, but they can be effectively managed with structured solutions offered by CreditQ. Through timely reporting, credit assessment, and settlement support, MSMEs can reduce the impact of defaulters, restore their credibility, and maintain sustainable growth. For long-term stability, MSMES must take prompt action and leverage tools like CreditQ’s services to mitigate payment default exposure. THANK YOU VISIT US +91 8504862035 www.creditq.in [email protected]
