New Delhi, Aug. 26 -- Delayed payments continue to strain MSME working capital and growth, with recent measures aimed at faster invoice settlement and dispute resolution, according to Confederation of Indian Industries (CII).

With over 9.28 crore enterprises registered on the Udyam portal and employing more than 38 crore people, payment delays can lock funds needed for production, hiring and expansion.

TReDS Gains Scale

The Trade Receivables Discounting System (TReDS), operational since 2017, enables MSMEs to upload approved invoices on RBI-authorised platforms, where banks and non-banking financial companies compete to discount them.

The system allows MSMEs to receive funds before invoices become due, on a collateral-free and without...