Delayed payments from public agencies have been cited as one of the major challenges faced by the private sector. To enhance private sector engagement, the NFSSM Alliance in collaboration with Centre for Water and Sanitation (CWAS) have worked on innovative models that are being used in various states and cities to reduce risk of delayed payments. It provides a brief overview of ongoing efforts and innovative approaches that can be taken up to address the issue of delayed payments. It is hoped that these will be discussed further and used to encourage greater private sector engagement with urban local governments for providing basic services such as water, sanitation and faecal sludge and septage management.