Industry focus remains on improving timely access to working capital and strengthening payment discipline
The article highlights the persistent liquidity challenges faced by MSMEs due to delayed payments, rising operational pressures, and limited access to affordable working capital. Despite continued policy interventions and formal financing initiatives, many small businesses continue to face cash flow constraints, often impacting business continuity and growth.
It further discusses how evolving receivables financing mechanisms and digital trade finance platforms are helping address these challenges by enabling faster access to liquidity, improving transparency, and strengthening payment discipline across the ecosystem. Increased policy attention towards formal receivables financing, including broader participation from financial institutions and government-backed support measures, is expected to further improve financing accessibility for MSMEs.
The article also underlines the growing importance of invoice-based financing in reducing dependence on informal or high-cost borrowing channels, particularly during periods of economic uncertainty and supply chain disruptions.
Commenting on the evolving ecosystem, Mr. Ketan Gaikwad, Managing Director & CEO, Receivables Exchange of India Ltd (RXIL), highlighted that TReDS enables MSMEs to access early liquidity through invoice-based financing backed by the buyer’s credit strength. He further noted that recent policy measures aimed at expanding TReDS adoption and strengthening receivables financing frameworks are expected to improve payment discipline and deepen formal credit access for MSMEs.