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 Nagpur: what is specific here
Nagpur’s position at the centre of India makes it a logistics and distribution hub in Butibori and MIHAN, and a supplier base for power, mining and steel companies in Vidarbha. Transport operators and distributors here carry freight and stock dues from large companies; MSME units supplying PSUs can use Samadhaan, and the Nagpur Bench handles larger disputes.
Main industries: logistics and warehousing, agri-trading and oranges, steel and power equipment, mining supply and pharma distribution.
Courts: Judicial Magistrate First Class courts, Nagpur, for Section 138; District Court, Nagpur, and its Commercial Court for recovery suits; the Bombay High Court Nagpur Bench for high-value matters.
MSME claims: Udyam-registered micro and small suppliers in Nagpur file on MSME Samadhaan, heard by the Maharashtra Micro and Small Enterprises Facilitation Councils (regional councils for Mumbai, Pune, Nashik, Nagpur, Aurangabad and Amravati regions) (Directorate of Industries, Government of Maharashtra, Mumbai, and regional Joint Director of Industries offices). The Council sits where the supplier is, so a Nagpur supplier can pursue a buyer in another state from home.
How recovery works for a business in Nagpur
- 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 Maharashtra Micro and Small Enterprises Facilitation Councils (regional councils for Mumbai, Pune, Nashik, Nagpur, Aurangabad and Amravati regions), a Section 138 complaint in the Nagpur 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.