The best no recovery no fee agency charges nothing before recovery, states its success fee as a single percentage of money actually received, discloses court fees separately before any filing, and still uses advocates and legal remedies, not just calls. FundRaksha charges 30% on recovery only, sends a legal notice within 24 hours and settles 60% of cases before court.
What "no recovery, no fee" should actually mean
A real no recovery no fee arrangement has three parts, and all three must be in writing before you hand over a file.
- Nothing upfront. No registration, onboarding, documentation, verification or "file opening" charge. If any amount is payable before money comes in, the arrangement is not no-fee.
- One clear success fee. A single percentage of money actually received by you, whether paid to you directly or through the agency. Not a percentage of the claim, and not a percentage of a settlement that has not yet been paid.
- Separate, disclosed costs. Court fees and statutory filing costs exist and someone must pay them. A fair agency tells you who pays, how much, and asks for approval before filing.
FundRaksha's terms follow this structure: 30% on recovery, nothing before, and court fees quoted in advance.
Why the model matters to your recovery
Fee structure decides behaviour. An agency paid upfront has already earned on your file; the incentive to work it hard after the first few calls is weak. An agency paid only on recovery earns nothing until your buyer pays, so it chooses the fastest lawful route and keeps pushing.
The same logic makes an honest no-fee agency selective. It will tell you when a debt is time-barred under the Limitation Act (three years from the due date or last acknowledgement), undocumented, or owed by a buyer with nothing left. That honesty is part of why 60% of FundRaksha cases settle before court: files are assessed properly at the start.
You can estimate what you would pay with the recovery fee calculator.
Six signs a no-fee promise is not real
- A "small" upfront fee described as refundable, administrative or for documentation
- A fee calculated on the claim amount rather than the amount actually received
- A clause charging the full fee if you settle directly with the buyer after signing, with no time limit or work threshold
- Monthly "maintenance" or follow-up charges while the case is open
- Court fees described vaguely, or added to the bill without prior approval
- Promises of a guaranteed result; no lawful agency can guarantee that a buyer pays
If you see any of these, ask for the clause in writing and compare it with the three-part test above.
No fee should not mean no legal power
Some no-fee agencies keep costs low by using only callers. That rarely moves a commercial buyer. FundRaksha keeps the success-fee model and still puts a dedicated enrolled advocate on every case. The advocate sends a legal notice within 24 hours, cites the buyer's exposure (interest at three times the RBI bank rate compounded monthly under the MSMED Act for registered micro and small suppliers, Section 138 for bounced cheques, GST input credit reversal on bills unpaid after 180 days), negotiates and, where needed, files on MSME Samadhaan, under Section 138, as a summary suit under CPC Order XXXVII or in arbitration.
Read more on the service itself: no recovery no fee and B2B debt collection.
Try it with no cost and no commitment
The free consultation costs nothing and does not oblige you to proceed. Bring the invoices, purchase order, delivery proof and the buyer's messages. You will hear what is recoverable, the route, a realistic timeline and the exact fee before you sign anything. FundRaksha has handled ₹50 Cr+ of invoices for 1,000+ businesses on these terms.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.