Credit days are the agreed time to pay. "30 days" usually means 30 days from the invoice date, though some trades count from delivery or from the end of the month. In Surat's textile trade the word for it is dhara.
Typical periods in Indian trade
Periods vary widely by trade and by season. A kirana supplier may give 7 to 15 days, a building material distributor 30 to 60, and some manufacturers 90 days or more to large buyers. In slow seasons, buyers often stretch these further.
The law on micro and small suppliers
Under the MSMED Act, 2006, a buyer must pay a micro or small enterprise registered on Udyam within the agreed period, which cannot exceed 45 days from acceptance of the goods or services. Where nothing is agreed, the limit is 15 days. Late payment carries compound interest at three times the RBI bank rate, and under income tax the buyer can claim the expense only in the year it pays (as of October 2026).
Making credit days work
- Print the due date on every invoice.
- Agree the period in writing before the first sale.
- Track dues by age, and call a few days before the due date.
- Offer a cash discount for early payment only if your margin allows it.
Credit days and the credit limit together decide how much of your working capital each customer uses.