Unsecured Credit Problem Crippling Nepali Market
Summary
Nepali businesses are facing a deepening unsecured credit crisis as payments for goods sold in the market are delayed for weeks or months, squeezing working capital and raising debt burdens. The article calls for legal reforms, a separate commercial tribunal, and stronger payment discipline to protect small and medium-sized firms.
Key Points
- Unsecured credit in Nepal’s market is tying up working capital and pushing many businesses toward cash-flow crises.
- Delayed payments ripple through suppliers, transporters, banks and the wider economy, while cooperative problems have further tightened liquidity.
- The article argues Nepal lacks a dedicated legal mechanism for commercial credit recovery, leaving disputes to slow civil-court processes.
- It recommends reforms such as legal recognition of invoices, fixed inspection deadlines, overdue interest, and stronger tax-based enforcement.
