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 Guntur: what is specific here
Guntur runs Asia’s largest chilli market and a large cotton and tobacco trade, where commission agents and traders extend credit to buyers across India. Commodity dues are high-value and often cheque-based; Section 138 and a prompt legal notice with the sale documents are the usual recovery path.
Main industries: chilli and spice trading, cotton and tobacco, agri-processing, construction materials and education.
Courts: Judicial Magistrate courts, Guntur, for Section 138; District Court, Guntur, and its Commercial Court for recovery suits.
MSME claims: Udyam-registered micro and small suppliers in Guntur file on MSME Samadhaan, heard by the Andhra Pradesh Micro and Small Enterprises Facilitation Council (Commissionerate of Industries, Government of Andhra Pradesh, Vijayawada/Amaravati). The Council sits where the supplier is, so a Guntur supplier can pursue a buyer in another state from home.
How recovery works for a business in Guntur
- 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 Andhra Pradesh Micro and Small Enterprises Facilitation Council, a Section 138 complaint in the Guntur 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.