For a Udyam-registered micro or small enterprise, the best payment recovery service knows the MSMED Act cold: 45-day payment limit, compound interest at three times the RBI bank rate, the Facilitation Council's 90-day target, the 75 percent deposit a buyer must make to appeal, and the Section 43B(h) leverage over the buyer's tax. FundRaksha sends the notice within 24 hours, files and appears before the Council, and charges 30% only on recovery, with no court fee for Samadhaan.
What an MSME should demand from a recovery service
- Udyam check first. The provider should confirm your registration status at the time of supply before promising Samadhaan.
- Correct interest. Three times the RBI bank rate, compounded monthly, period by period as the bank rate changes. A flat-rate computation will be attacked by the buyer's lawyer.
- A notice that uses the statute. Sections 15, 16 and 18 of the MSMED Act and Section 43B(h) of the Income-tax Act, with the interest tabulated.
- Council experience. Filing is easy; winning requires knowing how each state's Council runs conciliation and arbitration.
- No court fee surprise. Samadhaan has none. A provider who proposes a civil suit first, with its court fee, needs to explain why.
- Success-only fee. You are an MSME with a cash problem; you should not be paying a retainer.
How FundRaksha meets each demand
| Demand | FundRaksha |
|---|---|
| Udyam check | Done in the free consultation, with supply dates mapped to registration |
| Interest computation | Prepared by the advocate; see the MSME interest calculator |
| Statutory notice | Within 24 hours, citing s.15, s.16, s.18 and s.43B(h) |
| Council experience | Advocates appear before Councils in every state |
| Court fee | None for Samadhaan; any other filing quoted before you decide |
| Fee | 30% of recovery; nothing upfront |
Why buyers settle MSME claims quickly
The MSME claim is expensive for the buyer in three ways at once. The interest at three times the bank rate, compounded, grows faster than any commercial borrowing. The Section 43B(h) disallowance means the buyer's own tax goes up until he pays. And the Council award, once passed, can be appealed only after depositing 75 percent of it. A finance head who understands these three facts pays the principal to stop the clock, which is why FundRaksha's notice sets them out in a single table with the amounts filled in.
For the full process, see MSME debt recovery and MSME Samadhaan filing.
Beyond Samadhaan: the rest of the toolkit
Not every MSME debt fits Samadhaan: supplies before registration, medium enterprises, or buyers who paid by cheque that bounced. The best MSME service has the other remedies ready. FundRaksha uses Section 138 for cheques, a summary suit for written contracts and arbitration where the clause exists. And it helps prevent the next late payment with Collect reminders and mandates at ${PROOF.collectFee} and a buyer credit check through Trust.
MSME recovery in your state
FundRaksha appears before Facilitation Councils in Maharashtra, Gujarat, Tamil Nadu, Punjab and every other state. City example: SME debt collection agency in Coimbatore. To find out what interest you are owed and whether Samadhaan is open to you, book a free consultation. For MSMEs choosing between agencies, read best B2B collection agency for MSMEs.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.