A high percentage of startups are experiencing a slow down in receivables and transaction flow as a result of demonetisation of high-value currency notes, a survey has revealed.

“A higher percent of startups and small and medium-sized enterprises (SMEs) experienced a slowdown in funding and expansion plans,” according to a survey conducted by the LocalCircles citizen engagement platform.

The survey had a participation of over 30,000 start-ups and entrepreneurs from across the country. Some of the members reported that their customers were paying the bills in the old currency notes.

According to the polls: “28% startups suggested that the business was affected, 33% experienced no impact, 14% saw receivables getting better or improvement in payments and 25% did not have account receivables.”

A question in the poll focused on how understanding of transaction flow had bettered for startups and SMEs as many of them use electronic payment transactions.

Click here to read the complete story on Economic Times.

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