How to get paid faster — politely
“Rishta bhi bana rahe, paisa bhi time par aaye.”
What we have learnt from working with traders, manufacturers and service providers in Vapi: most late payments are not bad intent. They happen because terms were never clear, the bill reached late, or nobody followed up. Fix these three and cash comes in faster.
Money stuck with customers has a real cost
Set the terms before you deliver
Ninety percent of payment trouble is decided before the goods leave your godown.
Write the terms on the quotation
Credit days, due date and “interest on late payment as per MSMED Act” — on the quotation, the order confirmation and the invoice.
Take an advance from new customers
30–50% advance for the first two or three orders. Offer credit only after a customer has paid on time.
Fix a credit limit per customer
Decide the maximum outstanding you will allow. When it is reached, new orders move to advance — as a policy, not a personal decision.
Know who pays
Get the name and number of the accounts person, not just the purchase manager. The person who orders is rarely the person who pays.
Register on Udyam
Free and online. It gives you the 45-day legal protection and makes your invoices a priority for buyers who claim tax deductions.
Get delivery proof signed
A signed challan or e-way bill copy ends “we never got the goods” arguments before they start.
Make the bill easy to pay
- Send the invoice the same day as deliveryA bill sent on the 28th of the month is often paid a month later.
- Print the due date in bold, not just the credit days“Due on 15 November” is clearer than “30 days”.
- Add your UPI QR code and bank details on every invoiceRemove every reason to delay — a customer should be able to pay in one minute.
- Mention the PO number and your Udyam numberAccounts teams pay faster when the bill matches their purchase order.
- Send it on WhatsApp and email, and ask for a reply“Received, thank you” is your proof that the bill reached them.
A polite reminder schedule that works
Follow up on fixed days, in a calm and friendly tone. The first reminder goes before the due date.
- −33 days beforeFriendly reminder with QR
- DueDue dateThank-you note, payment details
- +33 days lateAsk for the expected date
- +77 days latePhone call, agree a date
- +1515 days lateStatement and formal email
- +3030 days lateFinal notice, stop credit
3 days before — friendly reminder
A friendly reminder that our invoice no. [No.] for ₹[Amount] is due on [Date].
For your convenience, our UPI QR and bank details are attached.
Thank you for your business! — [Your name], [Firm]
On the due date — thank you note
If the payment is already done, please share the UTR so we can update our books.
Thank you for always supporting us.
3 days late — ask for a date
Could you please let us know the expected payment date?
If there is any issue with the bill or the goods, tell us and we will sort it out quickly.
15 days late — formal and firm
Please find attached our statement of account. Invoice [No.] for ₹[Amount] is now 15 days overdue.
As per our agreed terms, we request payment by [Date]. As a registered MSME (Udyam [No.]), interest applies on delayed payment under the MSMED Act.
We value our relationship and look forward to your early payment.
Be polite, be regular, be specific
Always thank first
Start and end every message with thanks. Firm requests land better when they come with respect.
Ask for a date, not just money
“When can we expect it?” gets a commitment. “Please pay” gets “ok, sending soon”.
Offer easy options
Part payment now, the rest by a date. UPI, NEFT or a post-dated cheque. Make yes easy.
One person, one schedule
Give follow-up to one person in your team, on fixed days. Mixed messages from three people delay payment.
Never shame in public
No angry posts or group messages. Keep it private, calm and on record.
Reward early payers
A 1% discount for payment within 7 days often costs less than the interest you pay on your own loan.
Use the law that protects small suppliers
- MSMED Act, 45-day ruleA buyer must pay a registered micro or small supplier within the agreed period, not more than 45 days (15 days if there is no written agreement).
- Interest at 3× the RBI bank rateCompounded monthly from the due date, and the buyer cannot claim this interest as a tax expense.
- Section 43B(h) of the Income-tax lawThe buyer loses its expense deduction until it pays you — a strong reason for its accountant to release your payment before 31 March.
- MSME Samadhaan portalFile an online delayed-payment case. The Facilitation Council can order payment with interest.
- TReDS for large buyersSell approved invoices of big companies on TReDS platforms and get cash within days.
A 20-minute habit that keeps cash flowing
- Every Monday, open the receivables ageing reportGroup dues into 0–30, 31–60, 61–90 and 90+ days. Tally and Zoho Books do this in one click.
- Follow up on everything due this weekUse the schedule above. Note each promise date.
- Call every customer in the 60+ column personallyThe owner’s call works when staff reminders do not.
- Stop new credit to anyone in the 90+ columnSupply against advance until the old dues are cleared.
Getting paid — common questions
Will reminders spoil my relationship with the customer?
Not if they are polite, regular and expected. Customers respect suppliers who are organised. What spoils relationships is silence for 60 days followed by an angry call.
What interest can an MSME charge on late payment?
Under Section 16 of the MSMED Act, a buyer who pays a micro or small supplier late must pay compound interest with monthly rests at three times the RBI bank rate, from the due date. Your Udyam registration must be in place and you should be supplying as a manufacturer or service provider.
What is Section 43B(h)?
A buyer cannot claim the purchase as a business expense in its income tax return until it pays a micro or small enterprise (registered on Udyam as manufacturer or service provider) — within 15 days, or up to 45 days if agreed in writing. Many buyers pay faster once they know this.
When should I stop giving credit?
When a customer crosses the agreed credit limit or is more than 30 days overdue, move them to advance payment for new orders. Say it politely: it is your policy, not a judgement on them.
Can you send the formal notice for me?
Yes. We prepare the statement of account, interest working and a formal demand notice, and file on the MSME Samadhaan portal if needed.
Talk to us before the deadline does.
Share your question today. You get a clear answer and a fixed quote the same working day.