1) Protection against Delayed Payment from Customer / Buyer:

The buyer must pay compounded interest if the payment is delayed for more than 45 days after accepting the Goods or Services from an MSME Supplier. The Rate of Interest is thrice what the Reserve Bank of India charges. (Currently above 27%)

2) Government Schemes and Subsidies:

Govt. announces various schemes, subsidies and reliefs to promote and grow MSME Enterprises and also provides assistance for Technology Upgradation, Marketing and Promotions.

3) Zero Cost ISO Certifications:

The authorities will not charge any ISO certificate fees, if they submit an application to the Appropriate Authority with their MSME Registration Certificate.

4) Electricity Bill Concessions:

All businesses with an MSME Registration Certificate are qualified for electric bill discounts or concessions .

5) Collateral Free Bank Loans at Low Interest Rates:

The Indian Government has made Collateral-Free Financing available to all Small and Micro Business Sectors. This program offers financial assurances to micro and small businesses, both new and old. Further, MSME registered business are being offered loan at Lower Interest Rate as compared to Large and other Enterprises.

NEW AMENDMENT PROPOSED in Finance Bill, 2023

Section 43B is proposed for being amended to include a provision that expenditure of purchasing goods/services from any MSME entity will be allowed while computing income under the head Profits and Gains from Business or Profession only when payments due to that MSME entity are made within time-frame specified in MSMED Act, 2006 i.e. within 45 days from the date of invoice.
This amendment aims to protect MSME enterprises from potential Working Capital crunch due to delays in collection of dues from Large Corporations.