B2B debt collection is the process of recovering unpaid trade invoices from business customers, from reminders and payment plans to legal notices, MSME Samadhaan, cheque bounce complaints, summary suits, arbitration and, for large defaults against companies, insolvency. In India the right route depends on the amount, the documents, whether the supplier is a micro or small enterprise, and how old the dues are. India's No.1 B2B payment recovery company, trusted by 1,000+ businesses, FundRaksha handles both the soft and the legal stages.
How it works in India
| Stage | Tool | Typical use |
|---|---|---|
| Before due date | Reminders, mandates | All invoices |
| 0-30 days late | Firm reminders, statement of account | Most late payers |
| 30-90 days late | Legal notice | Buyers who stopped responding |
| After notice | MSME Samadhaan, Section 138, summary suit, arbitration | Buyers who still refuse |
| ₹1 crore+ against a company | IBC Section 8 and 9 | Large undisputed defaults |
The documents matter more than the tone: purchase orders, invoices, e-way bills, GRNs and a ledger confirmation decide how quickly a buyer gives in.
Why it matters for getting paid
For an Indian SME, a single large unpaid invoice can wipe out a year's profit, and GST on it has already been paid. Collection is not a favour to ask; it is a process with legal consequences for the buyer, including interest, Section 43B(h) disallowance and, for companies, insolvency risk. Acting early keeps every option open. See B2B debt collection services.
How FundRaksha uses it
FundRaksha covers both stages. FundRaksha Collect runs reminders and UPI Autopay or NACH mandates for a 1% fee on collections. FundRaksha Legal assigns a dedicated advocate who sends a notice within 24 hours and charges 30% only on recovery. A free consultation maps each invoice to the right route.
Worked example (hypothetical)
An Indore packaging firm has ₹25,00,000 overdue across five buyers. Three buyers, owing ₹9,00,000 together, pay within a month of structured reminders through Collect; the fee at 1% is ₹9,000. The other two, owing ₹16,00,000, go to FundRaksha Legal. One, owing ₹10,00,000, settles in full after the notice; the fee at 30% is ₹3,00,000. The last, owing ₹6,00,000, ignores the notice, and the firm, being Udyam-registered, files on MSME Samadhaan with a claim for principal plus statutory interest.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.