Delayed Payments Hinder SME Growth

Currently, the small and medium enterprise (SME) sector in India is
running the risk of defaulting on payments to their creditors due to
the global credit crunch. The decline in profit margins and the state
of bankruptcy of a few big players have resulted in delayed payments to
small scale suppliers, who act as a sourcing point for them.
Consequently, the growth of these small enterprises is hindered due to
cash flow problems. The issue of delayed payments has caused some of
the small enterprises to lay off their workers and even shut shops.