#MSME payment recovery

[amlawfrimseo]

The Micro, Small, and Medium Enterprises (MSME) sector is a cornerstone of the Indian economy, contributing significantly to GDP and employment. The MSMED Act, 2006 addresses long-standing challenges faced by MSMEs, particularly delayed payments. Key provisions include mandatory payment timelines of 45 days (Section 15), deemed acceptance of transactions within 15 days (Section 2(b)), and compound interest on delayed payments (Section 16).

The Micro and Small Enterprise Facilitation Council (MSEFC) ensures speedy dispute resolution within 90 days through Alternative Dispute Resolution mechanisms. Recent initiatives like the Samadhaan Scheme provide an online platform for filing payment complaints, while government schemes under Atma Nirbhar Bharat enhance liquidity. Judicial decisions, such as Maa Alloys Pvt. Ltd. and Gupta Power Infrastructure Ltd., have upheld MSME rights, setting strong precedents.

With proposed legal reforms and increasing awareness, the MSMED Act is driving positive change, safeguarding MSMEs, and securing their vital role in India's economic growth.

TO know more:https://www.amlawfirm.in/post/msme-act-2006-legal-framework-and-key-judicial-developments

[legalman1]

MSME Payment Recovery Under the MSME Act, 2006.

Micro, Small, and Medium Enterprises (MSMEs) form the backbone of the Indian economy, contributing significantly to employment generation, exports, and industrial output. However, one of the persistent challenges faced by MSMEs is delayed payments from buyers, which can disrupt cash flow and affect business growth. To address this issue, the Indian government introduced the MSME Development Act, 2006, which includes robust provisions to ensure timely payment recovery. This article delves into the MSME payment recovery process and how businesses can leverage the legal framework to secure their dues.

The Problem of Delayed Payments

Delayed payments pose a significant challenge to MSME payment recovery process, leading to:

Cash Flow Constraints:

Late payments hinder day-to-day operations by affecting liquidity.

Increased Borrowing Costs:

MSMEs often rely on loans to bridge the financial gap, resulting in higher interest burdens.

Stunted Growth:

Inadequate working capital prevents businesses from expanding and seizing new opportunities.

Operational Delays:

Payment delays can lead to missed deadlines, supply chain disruptions, and reduced efficiency.

Legal Framework for Payment Recovery

The MSME Development Act, 2006, provides a comprehensive framework to address delayed payments. Key highlights include:

1. Payment Timeline

Buyers are mandated to make payments to MSMEs within 45 days of the acceptance of goods or services. Failure to comply attracts penalties.

2. Interest on Delayed Payments

Buyers are liable to pay compound interest at three times the bank rate notified by the Reserve Bank of India (RBI) for delayed payments beyond 45 days.

3. Mandatory Agreement Terms

Contracts between buyers and MSMEs must explicitly include payment terms in compliance with the MSME Act.

4. Role of MSE Facilitation Council (MSEFC)

The Micro and Small Enterprises Facilitation Council (MSEFC) is a statutory body set up under the Act to resolve payment disputes efficiently.

Steps for MSME Payment Recovery

1. Initiate Communication

Before resorting to legal measures, MSMEs should attempt to resolve the matter through direct communication with the buyer, providing invoices and reminders for payment.

2. File a Complaint with MSEFC

If communication fails, the next step is to file a complaint with the MSEFC in the respective state. The complaint should include:

Invoices

Purchase orders

Correspondence with the buyer

Details of the transaction

3. Conciliation Process

The MSEFC initiates a conciliation process to resolve the dispute amicably between the parties.

4. Arbitration Proceedings

If conciliation fails, the council refers the case to arbitration. The arbitration award is binding and enforceable under the Arbitration and Conciliation Act, 1996.

5. Time-Bound Resolution

The MSEFC is required to resolve disputes within 90 days of filing the complaint.

Benefits of MSME Payment Recovery Provisions

Timely Resolution:

The legal framework ensures disputes are resolved within a stipulated timeline, improving cash flow.

Financial Protection:

Interest on delayed payments acts as a deterrent for buyers, encouraging timely settlements.

Empowerment:

MSMEs have access to a statutory platform for dispute resolution, promoting fairness and accountability.

Legal Enforcement:

Arbitration awards are legally binding, ensuring compliance from buyers.

Role of LegalMan in MSME Payment Recovery

LegalMan is a trusted partner for MSMEs seeking assistance in MSME payment recovery processunder the MSME Act, 2006. Here’s how we help:

1. Expert Consultation

Our team provides detailed guidance on the provisions of the MSME Act and the recovery process.

2. Document Preparation

We assist MSMEs in compiling and organizing all necessary documents for filing a complaint with the MSEFC.

3. Complaint Filing

LegalMan manages the application process, ensuring accurate and timely submission to the MSEFC.

4. Representation

Our experts represent MSMEs during conciliation and arbitration proceedings, safeguarding their interests.

5. Post-Resolution Support

We provide guidance on enforcing arbitration awards and recovering payments.

Common Challenges in MSME Payment Recovery

While the legal framework is robust, MSMEs often face challenges such as:

Lack of Awareness:

Many MSMEs are unaware of their rights under the MSME Act.

Inadequate Documentation:

Missing or incomplete documents can delay the recovery process.

Reluctance to Pursue Legal Action:

Fear of straining business relationships often deters MSMEs from filing complaints.

LegalMan helps overcome these challenges by providing end-to-end support, ensuring a seamless MSME payment recovery process.

Proactive Measures to Avoid Delayed Payments

Clear Agreements:

Include detailed payment terms in contracts with buyers.

Regular Follow-Ups:

Send periodic reminders for payments to ensure timely settlements.

Leverage Technology:

Use accounting software to track invoices, due dates, and payment statuses.

Build Strong Relationships:

Work with trustworthy clients who adhere to payment terms.

Conclusion

Delayed payments can severely impact the financial health of MSMEs, but the provisions under the MSME Development Act, 2006, provide a robust mechanism for MSME payment recovery process. By leveraging the services of LegalMan, MSMEs can navigate the complexities of the recovery process with ease and focus on their business growth.

If you are facing delayed payment issues, don’t let it hinder your progress. Visit LegalMan today and let us assist you in recovering your dues efficiently and effectively.

[udyamregister]

Forgot Udyam Registration Number (URN) or Udyog Aadhaar Memorandum: A Complete Guide

Udyam Registration is an essential step for small and medium-sized enterprises (SMEs) in India to avail of government benefits, schemes, and programs. As part of the process, businesses are provided with a unique Udyam Registration Number (URN) or Udyog Aadhaar Memorandum (UAM), which is a one-time identification number issued by the Ministry of Micro, Small, and Medium Enterprises (MSME). This number is crucial for the recognition of a business in the MSME sector, enabling it to access various benefits, including subsidies, financial assistance, and priority sector lending.

However, what happens if you forget your Udyam Registration Number or Udyog Aadhaar Memorandum? Losing or forgetting this number can create significant difficulties, especially when applying for loans, government schemes, or renewing registration. Fortunately, there are straightforward steps you can take to retrieve your URN or UAM. In this guide, we will walk you through the process of recovering a forgotten Udyam Registration Number, its significance, and how to ensure the continued smooth operation of your business in compliance with MSME guidelines.

What is Udyam Registration and Why is it Important?

Udyam Registration is an online registration process launched by the Indian government in 2020 as part of its effort to formalize and support small and medium-sized businesses. Before Udyam, businesses had to register under the Udyog Aadhaar system, which was replaced to streamline the process and improve efficiency.

The registration is mandatory for any MSME business that wants to take advantage of government schemes, subsidies, and incentives. Some of the benefits of Udyam Registration include:

Access to government subsidies: Registered MSMEs can apply for various government grants and funding opportunities.

Ease in securing loans: MSMEs with Udyam registration find it easier to access loans and financial services with better terms.

Protection against delayed payments: MSMEs are given legal protection in case of delayed payments from buyers.

Eligibility for government procurement schemes: Businesses can participate in government tenders and procurement opportunities reserved for MSMEs.

With the introduction of the Udyam Registration Number (URN), businesses are now given a unique identification number that serves as a reference for various official processes.

How to Retrieve Your Forgotten Udyam Registration Number (URN)?

If you have forgotten your Udyam Registration Number (URN) or Udyog Aadhaar Memorandum (UAM), there are a few ways to recover it. The process is relatively simple and can be done online, making it convenient for business owners.

Step 1: Visit the Official Udyam Registration Portal

The first step is to visit the official Udyam Registration portal.

Step 2: Click on the "Forgot Udyam Registration Number" Option

On the homepage of the Udyam Registration website, you will find a link for "Forgot Udyam Registration Number" or "Forgot Udyog Aadhaar Number." Click on this option to proceed with the recovery process.

Step 3: Provide Required Details

You will be asked to provide some basic details to retrieve your registration number. These typically include:

Aadhaar Number: The Aadhaar number of the business owner or authorized signatory.

Name of the Entrepreneur: The name that was provided during the Udyam/Udyog Aadhaar registration.

Email ID or Mobile Number: The contact information used during registration.

Once you enter these details, the system will verify them against the existing records in the database.

Step 4: Receive Your Udyam Registration Number (URN)

After the verification process is completed successfully, the system will retrieve your Udyam Registration Number (URN) and display it on the screen. You may also receive a confirmation email or SMS with the URN.

Step 5: Download the Udyam Certificate

Once you've recovered your Udyam Registration Number, you can download the Udyam Certificate, which is a document that includes your URN, business details, and registration information. It is recommended to keep a copy of this certificate for future reference.

What If You Can’t Retrieve Your Udyam Registration Number?

In some cases, the details entered may not match the records in the system, or there might be other issues preventing the retrieval of the URN. If this happens, consider the following steps:

1. Check the Details Carefully

Ensure that the information you entered (such as Aadhaar Number, Name, and Contact Details) is correct and matches what was submitted during the registration process.

2. Contact the Udyam Support Team

If you are still unable to retrieve your udyam certificate download, you can contact the Udyam Registration support team for assistance. The official contact number and email address are available on the Udyam Registration website.

3. Visit the Local MSME Office

Alternatively, you can visit your local Ministry of MSME office or the nearest Udyam registration center for help. They can assist you in recovering your URN by verifying your business details.

How to Prevent Forgetting the Udyam Registration Number in the Future?

Once you retrieve your Udyam Registration Number, it’s important to store it safely to avoid future issues. Here are some tips to keep track of your URN and related details:

Store it in a secure document management system: Keep a digital or physical copy of your Udyam Registration Certificate in a secure, easily accessible location.

Create backups: Save the document in multiple formats (such as PDF or JPG) and store it on cloud storage or external drives.

Record it in your business records: Include the URN in your business’s legal and financial documents.

Use email alerts: Set up reminders for any renewal or updates required for your Udyam registration.

Importance of Keeping Your Udyam Registration Updated

An important point to note is that your Udyam registration needs to be kept up-to-date. If any changes occur in your business, such as a change in ownership, type of business, or address, these changes should be updated in the Udyam portal to avoid discrepancies. Failure to update your registration could lead to difficulties in availing of government schemes or in legal processes.

Conclusion

Losing or forgetting your udyam certificate download pdf (URN) or Udyog Aadhaar Memorandum can cause disruptions to your business, but the process of retrieving it is simple and straightforward. By following the steps outlined above, you can quickly recover your URN and ensure that your business continues to benefit from government schemes and financial assistance. It is also important to maintain accurate records of your Udyam Registration Number and ensure that your business information remains updated to avoid future complications.

[businesscreditreport]

Maximize Efficiency with CreditQ’s Small Business Credit Management Tools

Take advantage of CreditQ’s exclusive features designed for MSMEs and small business credit management. Gain valuable buyer credibility insights, automate your credit processes, and streamline payment recovery efforts. These tools help businesses efficiently manage finances, reduce risks, and ensure smoother operations for long-term success. Explore more @ https://creditq.in/post/how-to-build-small-business-credit/

[ancoraa-resolution]

Understanding MSME Samadhaan and the Documents Required for MSME Samadhaan

If you’re an MSME owner or stakeholder, navigating the MSME Samadhaan portal can significantly help with payment recovery. Here’s everything you need to know about the MSME Samadhaan initiative and the documents required for MSME Samadhaan.

Visit here:-

[psbloansin59minutes]

https://www.psbloansin59minutes.com/knowledge-hub/everything-to-know-about-msme-samadhaan

MSME Samadhaan: Swift Resolution for Delayed Payments

MSME Samadhaan is a dedicated portal launched by the Ministry of Micro, Small and Medium Enterprises (MSME) to address delayed payments to MSMEs. It empowers small business owners by providing a platform to file complaints against delayed payments from buyers. The portal ensures transparency and expedites the resolution process, promoting a fair business environment. By facilitating the recovery of dues, MSME Samadhaan strengthens the financial stability of small businesses, fostering growth and sustainability in the sector.

[npaconsultantinindia]

WHY MSME’s ARE SHY OF RESTRUCTURING?

Debt restructuring is basically a medium to reduce the debt of a person or a business, which includes negotiating and agreeing with its lenders to reduce the debt or to revise the repayment plan with the ultimate aim of enabling the borrower to meet his revised payment obligations. With a debt restructuring, the organization’s chances of paying back its obligations and staying in business greatly improve.

But today, lending institutions are restructuring debt by converting the overdue amount into a WCTL (working capital term loan).

In such cases, most of the time, the rate of interest under WCTL is higher than the initial rate of interest that the bank was levying on the borrower. Under such circumstances, the payout ratio of the borrowers is increasing. For example, if a borrower has borrowed an original loan of Rs. 100 and is paying Rs. 10 interest, after restructuring, it will increase to Rs.11 or Rs.12. The question here is that if he is not able to pay Rs.10 how could he serve Rs.11 or Rs.12 ? So, borrowers are shying away from restructuring.

At the time of restructuring banks demand 10% to 20% as additional promoter’s contribution which MSMEs are unable to contribute.

The lending institutions not only ask for additional contributions but also ask for additional security. This further acts as a hurdle for borrowers, and MSMEs are unable to accept or fulfill the requirements set by their lenders.

The borrower needs hassle free restructuring, a haircut, & sufficient gestation period after restructuring, but unfortunately, they do not get any of these.

There is no haircut in the restructuring process, which means that a portion of the outstanding interest payment does not get written off.

How can banks improve their restructuring process?

The bank should actually do a revaluation of the repayment capacity of the borrower and accordingly decide the restructuring and repayment schedule.

They can work out a ballooning repayment schedule, or it could be a combination of a reasonable gestation period along with a ballooning repayment schedule.

The Bank should look at the recovery of the restructured debt in 2 ways:

a) Offer short gestation period for recovery of principal debt recoverable over longer period of time, either with EMI or ballooning pattern.

b) Offer longer gestation period for recovery of overdue interest amount recoverable in 3 to 5 years. It has to be noted that the break-even point is kept reasonably low, whereby the MSME should be able to service the loan and also earn profit for themselves and should not become unpaid slaves of the lending institutions or the Banks. Alternately, a certain portion of the restructured debt may be converted into Equity with personal obligation of MSME promoter to buy back after certain period.

The Bottom line is survival of business, serviceability of the loan and enriching the MSME promoter, making him capable of buy back such equity at a specified return on investment to the lender or Institution.

Bank has to do real restructuring by

1. Considering the viability of the project.

2. Considering the actual repayment capacity of the project.

3. Avoid asking for an additional contribution.

4. Avoid asking for additional collateral securities.

5. Offer long term repayment period of 10–15 years, as offered in case of housing loans, which will bring down their BEP.

If these little aspects are thought upon and implemented, perhaps restructuring can be successfully worked out in the interest of the lending institutions as well as for the borrowers.

Conclusion:

If bankers are only looking from their recovery point of view and not from the survival and revival point of the borrower, then banks will definitely succeed in window dressing its books by offering and sanctioning non-workable restructuring of loan to borrowers who try to accept such sanction under despair and with hope of borrowing the time, to avoid harassment, and not being classified as Non-Performing Asset.

More than 90% of restructured plans have eventually failed within the span of 1 year because the restructuring plans were never practical or pragmatic.

𝐑𝐞𝐦𝐞𝐦𝐛𝐞𝐫, ����𝐟 𝐭𝐡𝐞 𝐛𝐚𝐧𝐤 𝐡��𝐬 𝐛𝐞𝐭𝐭𝐞𝐫 𝐫𝐞𝐬𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐢𝐧𝐠 𝐩𝐫𝐨𝐩𝐨𝐬𝐚𝐥𝐬, 𝐢𝐭 𝐰𝐢𝐥𝐥 𝐰𝐨𝐫𝐤 𝐛𝐞𝐭𝐭𝐞𝐫 𝐟𝐨𝐫 𝐌𝐒𝐌𝐄𝐬

[legalbabu]

Recover your payments effortlessly with our user-friendly platform, specially crafted for Micro, Small, and Medium Enterprises (MSMEs). No more chasing overdue payments or navigating complex processes. We understand the importance of your cash flow, and our system ensures a swift and efficient recovery. Don't let delayed payments hinder your progress. Choose the MSME Payment Recovery System today and experience a new era of financial control. Your payments are waiting – claim them now!

[healthy-jeena-sikho]

Enhancing Post-Surgery Care with Hospital Beds at Home

After undergoing surgery, proper post-operative care is crucial for a smooth recovery. While hospitalization has traditionally been the norm, an emerging trend is the use of hospital beds in home care settings. This article explores the benefits of using hospital beds at home after surgery, with a focus on the two main types available: manual and motorized beds. By understanding their features and advantages, patients and their families can make informed decisions to improve comfort and enhance recovery.

Hospital beds designed for home care offer numerous advantages compared to regular beds. One of the key benefits is their adjustability, which allows for optimal positioning and support during the recovery process. Manual hospital beds, the first type to consider, operate without the need for electricity. These beds feature a crank system that enables the elevation of various sections of the bed, such as the head, foot, and overall height. Patients can adjust the bed to a comfortable position using the easily accessible cranks. This feature is especially helpful for individuals who require different levels of elevation to alleviate pain or promote proper circulation.

On the other hand, motorized hospital beds offer even greater convenience and flexibility. These beds are equipped with an electric motor that enables easy adjustments to the bed's position with just the touch of a button. Whether it's raising the headrest, elevating the footrest, or changing the overall height, patients can achieve optimal positioning without any physical exertion. This automated functionality can significantly reduce discomfort and strain on patients, particularly those with limited mobility or strength. Motorized beds also provide caregivers with greater ease in assisting patients, as they can effortlessly reposition the bed to meet the patient's needs.

Moreover, when considering hospital beds for home care, it is essential to find a reliable and reputable provider. Healthy Jeena Sikho is a renowned company that offers hospital bed rentals at the best rates in Delhi, Noida, Gurgaon, Pitampura, Dwarka, Jaipur, Chandigarh, Jalandhar, Lucknow, Mohali, Ludhiana, Bathinda, Shimla, and Mandi. With over 7+ years of experience, they are ISO certified and MSME recognized, ensuring quality service and reliable products.

Healthy Jeena Sikho's USPs set them apart from the competition. They offer multiple payment options, including UPI, bank transfer, cash, and cards, providing convenience to their customers. With a 5-star customer rating on Google and over 50,000 customers served, they have established a reputation for exceptional service. Their 24*7 support through chat, WhatsApp, calls, and video calls ensures that customers can receive assistance whenever needed. With a stock of 10,000 hospital beds, wheelchairs, BiPAP machines, and other medical equipment, they can cater to various needs promptly.

Conclusion:

In conclusion, the use of hospital beds in home care after surgery, whether it's manual or motorized, significantly improves patient comfort and convenience. By choosing the most suitable bed type and availing the services of reputable companies like Healthy Jeena Sikho, patients can optimize their post-surgery recovery experience. With their extensive experience, ISO certification, and MSME recognition, Healthy Jeena Sikho offers a wide range of hospital beds and equipment at the best rates in multiple locations across India. Their customer-centric approach, diverse payment options, and round-the-clock support make them an ideal choice for anyone seeking reliable and efficient home care solutions. Embracing the advantages of hospital beds in home care ensures that patients can focus on healing and regain their strength in the familiarity and comfort of their own homes.

[msmehelpline123]

Register and Update your Profile with Required Documents

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[sravifmrbse]

S Ravi BSE, Russia-Ukraine war Indian bank NPAs can rise

Banks will have to assess the sectoral exposure to evaluate the financial impact of the war, S Ravi BSE describes, especially on MSMEs which do not have the cushion to absorb the additional costs like large corporations.

Indian banks could witness a higher level of non-performing assets (NPAs) as a chain effect of various sectors being affected by the Russia-Ukraine crisis, especially the MSME sector which is still recovering from the brutal impact of the pandemic, S Ravi, Former Chairman of BSE and Founder & Managing Partner, Ravi Rajan & Co, told ETBFSI.

“The banks would have to carry through the sectoral sensitivity of these various sectors, to evaluate the financial impact of the war. Interest rates,however, are not likely to go up as banks would not like to take such steps until they get a complete overview of the impact,” he said.

The induced shortages, increased commodity prices and disruption in logistics in the region from a prolonged war will adversely impact the MISME sector, said Aruna Pannala, Partner, Deloitte India, while also highlighting that the advances to MSME have already declined as of September 2021 compared to March 2021, as per the RBI’s Financial Stability Report.

” The expected liquidity outflow due to the war will therefore impact the credit flow to the sector. The possibility of a wave of new variants of coronavirus also threatens the growth prospects. In this scenario, MSMEs are vulnerable, particularly those operating at less than full capacity. We expect that the NPAs can increase by 2-3 percentage points over the next 6 – 9 months, ” she said.

Interest rates and input costs:

Shivam Bajaj, Founder & CEO at Avener Capital is also of the opinion that the prolonged conflict between Russia and Ukraine would put pressure on interest rates and input costs and hit bottom-line of businesses.

Shortage of food, wheat particularly, increase in the price of oil will trigger inflation in various economies around the world. For the export-oriented MISME, there may be delays in delivery of orders and collections, while the import oriented MISMEs will have their supply chain disrupted, thereby negatively affecting cashflows.

“Large corporations have the cushion to absorb the additional costs without passing it to the customers for a longer period. However, MSMEs being price takers do not have the ability to dictate prices and may be compelled to absorb the additional costs which put an adverse strain on their profitability and balance sheet ” he said.

Uneven sectoral recovery:

Indian banks may face some headwinds from the crisis, which could lead to higher inflation and some stress for borrowers, however, the situation is still evolving and is being closely monitored, said Deepali Seth Chhabria, Analyst at’S&P Global Ratings.

‘There are some pockets of stress that we see in retail and the small and medium enterprises sectors given that the recovery so far has been uneven, but with a further pick up in the economy the residual stress should start abating,” she told Reuters.

Marginal impact on banks:

Krishnan Sitaraman, senior director and deputy chief ratings officer, CRISIL Ratings told ETBFSI last week that Indian banks’ direct exposure to Russia and Ukraine is limited and the direct impact from the conflict is likely to be marginal.

Banks will also get 10 days to complete the processing of payments already in the sustem to avoid near-term problems for businesses and trade.

There will be no immediate impact of the Russia-Ukraine crisis on Indian banks since according to him the exposure of the banks is not as much, and their strong balance sheets will be able to withstand the situation.

[npaconsultant-stuff-blog]

WHAT IS COLLATERAL FREE EMERGENCY CREDIT LINE GUARANTEE SCHEME ?

Unveiling the first tranche of economic stimulus to help businesses during the Covid-19 pandemic, Finance Minister Nirmala Sitharaman on May 13 announced collateral-free loans up to Rs 3 lakh crore backed by government guarantee. Meant to help businesses suffering from a severe cash crunch, the Government has since the announcement come out with the guidelines on how the scheme will operate key details of the scheme. This move will surely reduce the possibility of npa in india.

What are the details of the Collateral free MSME loans?

The 100% collateral-free MSME loan is being called the Emergency Credit Line Guarantee Scheme (ECLGS), which is being provided by the National Credit Guarantee Trustee Company (NCGTC) to banks, NBFCs and Financial Institutions (FIs). According this scheme, every eligible MSME or business enterprise, gets a pre-approved sanction limit of up to 20% of loan outstanding as on 29th February, 2020. This is in the form of additional working capital term loan facility (in case of banks and Financial Institutions), and additional term loan facility (in case of NBFCs). This is a special scheme to help small businesses battling the economic impact of Covid-19 and includes Pradhan Mantri MUDRA Yojana (PMMY) borrowers. It will help in bringing down the pressure on of npa recovery process.

Who is eligible for the scheme?

All business enterprises or MSMEs that have a combined outstanding loan across different banks, NBFCs and FIs up to Rs. 25 crores as on 29.2.2020, and when the annual turnover of the firm is up to Rs. 100 crores for FY 2019-20 is eligible for the Scheme. Proprietorship, partnership, registered company, trusts and Limited Liability Partnerships (LLPs) are all eligible under the Scheme, but only the loans taken for the business is being covered. Any loan taken by a promoter or director in his personal capacity will not be covered under the scheme. What is important to note is that the Scheme is valid for existing customers of a bank, NBFC or FI. This means this scheme is not for new borrowers. Also, the loan account should be less than or equal to 60 days past due as on 29th February, 2020 and the borrower has not been classified as SMA 2 or NPA by any of the lender as on 29th February, 2020. A borrower must also be registered under GST, unless the business is not required or exempted from having a GST registration. It is essential to consult nclt lawyers Mumbai to know exact terms and conditions.

What is the amount that can be borrowed?

The maximum amount eligible under this scheme either in the form of additional working capital term loan facility (in case of banks and Financial Institutions), and additional term loan facility (in case of NBFCs) is set at 20% of the total outstanding loans up to Rs 25 crore as on 29th February, 2020. To arrive at the total outstanding, only on-balance sheet exposure like an outstanding amount in working capital loan, term loa.

What is the interest rate on such loans?

To ensure that the scheme is beneficial to the borrowers and the cost of borrowing is kept low; Banks and FIs link their lending rate to one of the external benchmark rates prescribed by RBI plus 1% subject to a maximum of 9.25% per annum. Similarly, NBFCs cannot charge more than 14% as interest for the loans under this scheme This facility is available for borrower from May 23, 2020 to 31st October, 2020, or till an amount of Rs. 3 lakh crores have been sanctioned, whichever is earlier.

Other terms?

The loan under this scheme is extended for a period of four year from the date of disbursement and there will be no pre-payment charge if a borrower wants to repay early. There will also be no processing fee for such loans. What is important to note is that a there will be a moratorium of one year on the principal repayment, but interest payment will continue during this period. The principal repayment will then be converted into equated instalments spread across the remaining period, .. NPA consultant in Mumbai is single window solution for Npa in India. Do not let the non performing assets be a nightmare for you.

[legalman1]

MSME Delayed Payment Recovery: Ensuring Fair Practices for Small Businesses.

Micro, Small, and Medium Enterprises (MSMEs) are the backbone of the Indian economy, contributing significantly to employment generation and GDP growth. However, one of the most common challenges faced by MSMEs  delayed payment from buyers, which can disrupt cash flow and affect business operations. To address this issue, the Indian government has implemented robust provisions under the MSME Development Act, 2006, to protect MSMEs and facilitate timely payment recovery. In this article, we explore the problem of delayed payments and how MSMEs can recover their dues effectively.

The Impact of Delayed Payments on MSMEs

MSMEs  delayed paymentcan severely impact MSMEs in several ways:

Cash Flow Issues: Late payments hinder the smooth functioning of business operations by causing cash flow disruptions.

Increased Borrowing Costs: MSMEs may need to rely on loans to manage operational expenses, leading to higher financial burdens.

Operational Challenges: A lack of working capital affects production, supply chain, and overall efficiency.

Stunted Growth: Limited liquidity can prevent MSMEs from scaling their operations or investing in new opportunities.

Legal Framework for MSME Payment Recovery

The MSME Development Act, 2006, contains provisions to safeguard MSMEs against MSMEs  delayed payment. Key highlights include:

Payment Timeline:

Buyers are required to make payments to MSMEs within 45 days of receiving goods or services.

Delays beyond this period attract penalties.

Interest on Delayed Payments:

An interest rate three times the bank rate notified by the Reserve Bank of India (RBI) is applicable on delayed payments.

Filing Complaints:

MSMEs can file complaints with the Micro and Small Enterprises Facilitation Council (MSEFC) in case of payment disputes.

Mandatory Agreement Terms:

Contracts between buyers and MSMEs must include payment terms that comply with the MSME Act.

Role of the Micro and Small Enterprises Facilitation Council (MSEFC)

The MSEFC is a statutory body established under the MSME Act to address delayed payment disputes. Here’s how it works:

Complaint Filing:

MSMEs can file a complaint with the MSEFC in their respective state.

The complaint must include details of the transaction, invoices, and communication with the buyer.

Conciliation Process:

The council initiates a conciliation process to resolve the dispute amicably.

Arbitration:

If conciliation fails, the MSEFC can refer the case to arbitration, which is binding on both parties.

Time-Bound Resolution:

The MSEFC is required to resolve disputes within 90 days of filing the complaint.

How to File a Complaint for Delayed Payments

Prepare Documentation:

Gather all relevant documents, including invoices, purchase orders, contracts, and correspondence with the buyer.

Submit an Application:

File a complaint with the MSEFC through their online or offline portal.

Attend Hearings:

Participate in the conciliation and arbitration processes as required.

Follow Up:

Keep track of the case’s progress and ensure compliance with the council’s orders.

Benefits of MSME Delayed Payment Provisions

Timely Payments:

The legal framework ensures that MSMEs receive their dues promptly, improving cash flow and liquidity.

Reduced Financial Stress:

Interest penalties act as a deterrent, discouraging buyers from delaying payments.

Access to Justice:

The MSEFC provides an accessible and efficient platform for MSMEs to resolve payment disputes.

Business Growth:

Timely payments enable MSMEs to focus on expanding their operations and achieving long-term goals.

How LegalMan Supports MSMEs in Payment Recovery

LegalMan is dedicated to empowering MSMEs by providing end-to-end assistance in MSMEs  delayed payment. Here’s how we can help:

Legal Consultation:

Our experts provide guidance on the legal provisions and processes under the MSME Act.

Documentation Assistance:

We help MSMEs prepare and organize all necessary documents for filing complaints.

Filing Complaints:

LegalMan manages the application process, ensuring accurate and timely submission to the MSEFC.

Representation:

Our team represents MSMEs during hearings and negotiations, ensuring their interests are protected.

Follow-Up Support:

We monitor the progress of cases and provide regular updates to clients.

Steps to Avoid Delayed Payments

Clear Contracts:

Ensure payment terms are clearly defined in all agreements with buyers.

Regular Follow-Ups:

Maintain consistent communication with buyers to remind them of pending payments.

Leverage Technology:

Use accounting software to track invoices, due dates, and payment reminders.

Work with Trusted Partners:

Build relationships with reliable clients who adhere to payment timelines.

Conclusion

MSMEs  delayed paymentcan be a major roadblock for MSMEs, but the provisions under the MSME Development Act, 2006, offer a robust framework for resolving disputes and ensuring timely recovery. By leveraging the services of LegalMan, MSMEs can navigate the complexities of the recovery process with ease and focus on growing their business.

If you’re an MSME facing delayed payments, don’t let it hinder your progress. Visit LegalMan today to explore how we can assist you in recovering your dues and securing your financial stability.

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A Comprehensive Guide to Udyam Registration: What to Do if You've Forgotten Your Registration Details

Udyam Registration is a significant step for small and medium enterprises (SMEs) in India, enabling them to avail numerous benefits, including financial assistance, subsidies, and easier access to government schemes. However, it’s not uncommon for business owners to forget their update Udyam Registration etails, such as the registration number or password. This guide aims to provide you with detailed steps to recover your registration information and highlights the importance of maintaining your Udyam status.

What is Udyam Registration?

Udyam Registration was introduced by the Government of India to replace the earlier MSME registration process. It is designed to facilitate the growth and support of micro, small, and medium enterprises. With Udyam Registration, businesses can enjoy benefits such as:

Access to government schemes and subsidies

Easier loan processing and lower interest rates

Enhanced visibility and credibility in the market

Protection against delayed payments

Why You Might Forget Your Registration Details

There are several reasons why you might forget your Udyam Registration details:

Time Lapse: If you registered a while ago and haven't needed the details since, it’s easy to forget.

Changes in Management: If ownership or management of the business changes, the new management might not be familiar with the registration details.

Technical Issues: Sometimes, technical problems can prevent you from accessing your account.

Steps to Recover Your Udyam Registration Details

If you've forgotten your Udyam Registration number or password, don’t worry. The process for recovery is straightforward.

Step 1: Visit the Official Udyam Registration Portal

To start, navigate to the official Udyam Registration website Ensure that you are on the official government site to avoid any fraudulent activities.

Step 2: Click on the “Forgot Registration Number” or “Forgot Password” Option

On the homepage, you will find options for “Forgot Registration Number” and “Forgot Password.” Click on the appropriate link based on your need.

Step 3: Provide Necessary Details

For retrieving your registration number:

Enter the required details, such as your name, mobile number, and email address linked to your Udyam Registration.

After submitting the information, you should receive a confirmation email or SMS containing your registration number.

For password recovery:

You may be asked to provide the registration number or your email/mobile number.

Follow the instructions sent to your registered email or mobile number to reset your password.

Step 4: Access Your Dashboard

Once you have your registration number or reset your password, log back into your Udyam Registration account. Here, you can access your dashboard, view your registration details, and update any necessary information.

Importance of Keeping Your Udyam Registration Active

Maintaining your Udyam Registration is crucial for several reasons:

Eligibility for Government Schemes: Various government initiatives and subsidies are accessible only to registered entities.

Ease of Doing Business: An active registration helps streamline various business processes, including loans and funding.

Credibility and Trust: Being registered enhances your business’s credibility, making it easier to attract customers and investors.

Protection Against Delays: Registered MSMEs have better legal protections against payment delays from larger enterprises.

Tips to Avoid Forgetting Your Registration Details in the Future

Store Information Securely: Keep your Udyam Registration details in a secure password manager or a physical notebook dedicated to business records.

Regular Updates: Periodically check your registration details and update your contact information if it changes.

Backup Documents: Maintain a backup of all important documents related to your business, including your Udyam Registration certificate.

Create Reminders: Set reminders for annual reviews of your registration status to ensure everything is up to date.

Frequently Asked Questions (FAQs)

Q1: Can I register my business without Udyam Registration?

Yes, businesses can operate without Udyam Registration, but they will miss out on various government benefits and support systems designed specifically for MSMEs.

Q2: How long does Udyam Registration last?

Udyam Registration does not have an expiry date, but it is advisable to keep your details updated, especially regarding changes in business structure or ownership.

Q4: What should I do if I face technical issues while accessing the Udyam portal?

If you encounter technical difficulties, it’s advisable to reach out to the support team through the contact details provided on the Udyam Registration portal.

Conclusion

Forget Udyam Registration details can be a hassle, but with the right steps, recovering your information is a simple process. Remember to regularly check and update your registration details to avoid issues in the future. By keeping your Udyam status active, you ensure that your business continues to benefit from government support and maintains its credibility in the market. Take charge of your business’s future by ensuring your Udyam Registration is always accessible and up to date!

[unbiasedph]

If he wins, Bongbong to 'prove' investors are not scared

MANILA, Philippines — Presidential aspirant Ferdinand “Bongbong” Marcos Jr. is unfazed by comments that the prospect of him winning the elections is turning off foreign investors, saying he would work on earning the trust of businessmen offshore. The survey frontrunner, whose late dictator father was ousted after pillaging the country’s coffers and sinking the economy to record-lows, said it is government policy, not his surname, that would matter to investors if he is elected. “Policies of every country, nearby states and our trade partners are important if these favor them or they are against it. That is where the government’s policies come from,” Marcos said in a taped interview with One PH’s Kandidatalks that aired on Monday. “It doesn’t matter who is sitting, they need to show that they are trustworthy and that trade is trade,” he said, adding: “We’ll just have to prove them wrong if we get the opportunity and we will.” A March Bloomberg poll of 28 investors and analysts showed Vice President Leni Robredo emerged as the most qualified candidate that could facilitate economic recovery. She got a score of 106. Marcos scored 46 in the survey, placing him at the near bottom with Sen. Manny Pacquiao, who got the lowest score of 44. In a note released last month, Alex Holmes, Asia economist at Capital Economics, pointed out Marcos’ “tax case and lack of achievements when he was a senator” — the same criticisms he faces at home. Holmes added: “If is elected, it would only reinforce our view that the economy will continue to underperform over the coming years.”

'Suspend excise tax'

The May elections will come at a crucial time for the economy as global headwinds from the Russia-Ukraine war threaten to derail the Philippines’ nascent recovery from the pandemic. In the past weeks, oil prices have been so high that economists fear it could hit consumption, a major economic driver. If elected, Marcos said he wants to review the Oil Price Stabilization Fund, which according to the Philippine Institute for Development Studies, is a budgetary allocation where any price change incurred by oil companies in importing crude oil is automatically absorbed and is not reflected in the selling price. The presidential aspirant said this will “soften the blow, where the stabilization fund will give subsidy.” But without the OPSF operating, Marcos said he agrees that one of the possible solutions is suspending the excise tax—a stand he also made earlier in March amid the Russian invasion of Ukraine. “In other words, what we are paying to buy oil, buy gasoline, buy crude oil, the government will cover part of it,” he added in Filipino. Just last week, Marcos, in a sortie in Parañaque, said he believes there should be oil subsidy to the transport sector. But he also acknowledged in a CNN Philippines report that the government stands to lose P117 billion per year if excise tax is suspended. At the same time, Marcos said he is willing to grant tax holidays to Micro, Small, Medium Enterprises (MSMEs) to help them recover from the pandemic, which could also cost the government much-needed revenues. Other presidential bets, however, have a proposal to fund the much-needed cash aid for inflation-hit Filipinos: Demand for the payment of the estimated P203 billion estate tax from the Marcos families. Source Read the full article

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Comprehensive Guide to MSME Recovery and Essential Documents for MSME

MSME recovery refers to the process through which small businesses reclaim their dues from customers or clients who have delayed or defaulted on payments. Delays in payment can significantly impact the cash flow of MSMEs, making it difficult for them to manage day-to-day operations, pay employees, and invest in growth opportunities.

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