Separate the claim into pass-through costs (media, production, third-party) and your fees. For pass-through costs, your proof is the client’s approval of the plan and the platform invoices; demand those immediately and in full. For fees, the approval trail of creatives and deliverables proves acceptance. Send a formal demand, then an advocate’s legal notice quoting the contract or approved estimate. A summary suit on the approved estimates and invoices follows, or arbitration if your agreement provides. Udyam-registered agencies can also use MSME Samadhaan.
The two kinds of money an agency is owed
| Component | Proof | Why clients resist |
|---|---|---|
| Media and production pass-through | Approved media plan or estimate; platform or vendor invoices; campaign reports | They dispute “performance”, which is irrelevant to spend they approved |
| Agency fee or retainer | Contract or proposal; approvals of creatives; deliverable handovers; monthly reports | They claim scope creep or dissatisfaction, usually after the invoice |
Lead the demand with pass-through costs. They are the easiest to prove, the most urgent for your cash flow, and the hardest for the client to argue.
Build the approval trail
- Proposal or estimate and the client’s approval (email, “approved” on WhatsApp, signed PO)
- Media plan approvals and any changes requested by the client
- Creative approvals: every “ok, go ahead” message, with dates
- Campaign reports sent and the client’s responses
- Invoices and reminders
Marketing teams approve quickly in chat and forget it later. Your exported chats and emails are the contract. See client not paying for services for the general service-fee approach and the advertising and media industry page.
The notice to a client
FundRaksha’s advocate sends a legal notice within 24 hours that sets out the agreement, the approvals, the spends incurred on the client’s behalf, the fees, and the interest, and demands payment. It also puts on record that the client has used the work and the campaign ran, which answers the “not satisfied” line before it is raised. India's No.1 B2B payment recovery company, trusted by 1,000+ businesses. Clients with marketing departments and finance functions settle at this stage in most cases, because the alternative is a filed claim with their name on it.
Routes for an agency
- Summary suit (Order XXXVII CPC) on the approved estimates and invoices: the client must seek leave to defend with a real triable issue, and “we hoped for more leads” is not one.
- Arbitration if your agency agreement has a clause.
- MSME Samadhaan if the agency is Udyam-registered as micro or small: interest at three times the bank rate from day 46, Council in your state, 90-day target. See MSME Samadhaan filing.
- Section 138 if the client’s cheque bounced.
Where the client is a startup, see startup client not paying for the particular dynamics.
Agency terms that prevent the next one
Collect media spend in advance; never fund a client’s media on your card beyond a small float. Put “approval by email or chat constitutes acceptance” in the agreement. Invoice fees monthly and suspend on 30 days overdue. Add interest and jurisdiction clauses. For the current client, book a free consultation; FundRaksha will separate the pass-through and fee claims and send the notice.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.