1. Check if you’re registered as an MSME (Udyam)
Your strongest weapons need Udyam registration. It’s free at udyamregistration.gov.in and takes minutes. If you’re not registered, do it today — protection generally applies to supplies made after registration.
2. Know the 45-day rule
Under the MSMED Act, a buyer must pay an MSME within the agreed credit period, which cannot exceed 45 days from acceptance of goods/services. Beyond that, the law is on your side — automatically.
3. Let the interest clock work for you
Delayed payments to MSMEs attract compound interest at 3× the RBI bank rate — whether or not your invoice mentions it. Calculate it and quote it in your follow-ups; buyers take the conversation differently when the number is on the table.
4. Send a structured demand
A dated written demand: invoice list, amounts, days overdue, the interest computation, and a clear deadline (7–15 days). Courteous but precise — send by email plus a traceable mode and keep proof.
5. File on MSME Samadhaan
samadhaan.msme.gov.in — the government’s delayed-payment portal. Your case goes to the Micro & Small Enterprises Facilitation Council (MSEFC): conciliation first, then arbitration. Filing itself often unlocks payment; buyers dislike appearing before the Council.
6. Keep the parallel tracks in mind
Bounced cheque? The Section 138 route runs on strict clocks — see our cheque bounce guide. Larger dues can also justify a civil recovery suit or, in genuine insolvency situations, other remedies — take advice before spending on litigation.