When a customer is not paying, the next step depends on three things: whether the debt is admitted, how long it has been due, and whether you have proof of delivery. The free consultation checks all three and recommends either a structured reminder, an advocate's legal notice within 24 hours, or a direct filing. Nothing upfront; 30% only on recovery.
Reading the customer's behaviour
The pattern of replies tells an expert a great deal. "Payment is in process" for three months means an approval or cash-flow problem, not a dispute; a notice to the finance head usually works. A sudden quality complaint after the due date is a delaying tactic; the notice should set out the acceptance record. No reply at all from a customer who has gone quiet across the board points to financial trouble, where speed matters more than tone.
Bring the full thread of messages to the call. The expert reads it as evidence, not as a story.
The three next steps and when each applies
| Next step | When it fits |
|---|---|
| Structured reminder with a deadline | Dues under 30 days late, good relationship, buyer admits the amount |
| Advocate's legal notice | Dues past the credit period, reminders ignored, or any dispute raised |
| Direct filing | Bounced cheque (Section 138 clock running), buyer at risk of closing, or notice already ignored |
For MSME suppliers the fourth option is MSME Samadhaan, which can be filed alongside the notice and adds interest at three times the RBI bank rate.
Mistakes to avoid while the customer is not paying
- Continuing to supply on credit while the old dues grow
- Accepting a post-dated cheque and then missing the 30-day Section 138 notice window when it bounces
- Agreeing a discount for "immediate payment" that never comes, and thereby reducing the admitted amount
- Letting three years pass without a written acknowledgement or part payment
- Sending angry messages that the buyer can later quote
What happens if you engage
If you decide to go ahead, a dedicated advocate is assigned within 24 hours of your complete documents and the legal notice goes out as an e-notice, followed by registered post. The notice fixes the amount, the interest and the deadline. The advocate then calls the customer, and in most matters a payment or schedule is agreed. If not, the same advocate files. Nothing is charged upfront. If you proceed, FundRaksha Legal charges 30% only on the amount actually recovered; if nothing is recovered there is no success fee. Court fees, where a matter is filed, are borne by you and told to you in advance.
More on this situation at customer not paying invoice, and for your city at how to recover pending payments in Jaipur or in Lucknow. Run the late payment interest calculator to put a number on the delay.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.