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This study examines the impact of credit policies on the working capital efficiency of Indian Micro, Small, and Medium Enterprises (MSMEs) using secondary data. It highlights the trade-off between liberal credit terms, which can boost sales but lead to cash flow issues, and restrictive policies that enhance liquidity but may limit growth opportunities. The findings aim to guide MSME owners and policymakers in developing effective credit practices that balance profitability and financial stability.

Author

sakshi.rajole2018

Language

EN