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 Coimbatore: what is specific here
Coimbatore’s pump, motor, foundry and textile-machinery makers sell to dealers and mills across India, usually against purchase orders and delivery challans. That paperwork is exactly what a strong legal notice or MSME Samadhaan claim needs, and most units here are Udyam-registered small manufacturers who can have the case heard in Tamil Nadu even when the buyer is elsewhere.
Main industries: pumps and motors, textile machinery and spinning, foundry and castings, wet grinders and appliances and IT services.
Courts: Judicial Magistrate courts, Coimbatore, for Section 138; District Court, Coimbatore, and its Commercial Court for recovery suits.
MSME claims: Udyam-registered micro and small suppliers in Coimbatore file on MSME Samadhaan, heard by the Tamil Nadu Micro and Small Enterprises Facilitation Council (Commissionerate of Industries and Commerce (MSME Department), Government of Tamil Nadu, Chennai). The Council sits where the supplier is, so a Coimbatore supplier can pursue a buyer in another state from home.
How recovery works for a business in Coimbatore
- 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 Tamil Nadu Micro and Small Enterprises Facilitation Council, a Section 138 complaint in the Coimbatore 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.