How to judge a debt collection company
- Who does the work? Advocates with the power to issue notices and file cases, or agents who can only call?
- How are they paid? A success fee aligns the company with you; advance fees pay them whether you recover or not.
- Do they know the law? Ask about the MSMED Act, Section 138 timelines and Section 43B(h). Vague answers mean weak notices.
- What is the track record? Numbers, not adjectives.
- Is everything documented? Notices, calls, settlements and filings should be in writing and shared with you.
FundRaksha compared
| FundRaksha | Collection agencies | Traditional law firms | |
|---|---|---|---|
| Who handles your case | A dedicated advocate | Call-centre agents | A lawyer, often juniors |
| Start | Notice within 24 hours | Repeated calls | Weeks of paperwork |
| Approach | Notice, negotiation, settlement, then filing | Pressure | File and wait |
| Fees | 30% on recovery, nothing upfront | Commission plus charges | Retainer plus per hearing |
| Track record | 700+ businesses paid | Rarely published | Not published |
Recovering B2B dues in Bengaluru: what is specific here
Bengaluru’s dues are dominated by service invoices: IT vendors, staffing agencies, SaaS subscriptions and consultants billing startups and large companies in Whitefield, Electronic City and the ORR corridor. Written contracts and emails are usually strong, which makes a legal notice followed by a summary suit effective; garment exporters in Peenya and Bommanahalli have more conventional trade dues.
Main industries: IT and software services, startups and SaaS, garments and apparel exports, aerospace and precision engineering and electronics.
Courts: Metropolitan Magistrate courts at the Mayo Hall and Nrupathunga Road court complexes for Section 138; City Civil Court and the Bengaluru Commercial Courts for recovery suits.
MSME claims: Udyam-registered micro and small suppliers in Bengaluru file on MSME Samadhaan, heard by the Karnataka Micro and Small Enterprises Facilitation Council (Directorate of Industries and Commerce, Government of Karnataka, Bengaluru). The Council sits where the supplier is, so a Bengaluru supplier can pursue a buyer in another state from home.
How recovery works for a business in Bengaluru
- Free consultation and case assessment. Send us the invoice, purchase order or delivery proof and the buyer’s messages. We tell you what is recoverable and how.
- Dedicated advocate within 24 hours. Your advocate sends a legal notice as an e-notice the same day and by registered post, with proof of delivery saved.
- Negotiation and settlement. The advocate calls the buyer, explains the consequences and agrees a payment plan. About 60% of our cases close here.
- Filing if needed. MSME Samadhaan before the Karnataka Micro and Small Enterprises Facilitation Council, a Section 138 complaint in the Bengaluru magistrate courts, a summary suit or arbitration, handled by the same advocate.
You pay nothing upfront. Our fee is 30% of the amount actually recovered; if nothing is recovered there is no fee. Court fees, where a matter is filed, are borne by you and told to you in advance.