On day one, send a polite written reminder with the invoice attached. On day 7, a formal demand with documents and a payment date. On day 15, a final demand stating that interest is accruing and credit supply is paused. If there is still no payment or no dated written commitment, have an advocate send a legal notice. Do not wait for round numbers like 90 days; the buyer is watching how you respond.
Day 1 to 7: confirm, do not just remind
The first message after the due date should do two things: remind, and confirm. Attach the invoice and ask the buyer to confirm it is approved and scheduled, and on what date. A buyer who replies “approved, releasing on the 20th” has acknowledged the debt in writing. A buyer who replies with a problem has told you what you are dealing with. A buyer who does not reply has told you something too.
Always write, even if you also call. Calls are forgotten; messages are evidence.
Day 7 to 15: the formal demand
- List the invoice(s), PO, delivery or acceptance reference, due date and amount
- State the credit period that applied and that it has expired
- If you are an MSME, state that interest at three times the bank rate accrues from day 46 under the MSMED Act; otherwise quote your interest clause
- Give a payment date 7 days out
- Ask for written confirmation of the balance
Send it to the accounts contact and the decision-maker. Keep the tone professional. This letter is the one you will later attach to the legal notice to show you gave the buyer every chance.
Day 15 to 30: the final demand and pausing credit
Make clear this is the last reminder before the matter goes to your advocates. Pause further supply on credit and say so in one line, without drama: “Further dispatches will be on advance payment until the account is regular.” Buyers who need your goods or services usually pay at this point. If you are deciding whether to keep supplying, read should I keep supplying when unpaid.
If the buyer offers a payment plan, accept it only in writing with dates and amounts, and a clause that the full balance becomes payable on any default.
Day 30 onwards: the legal notice
A legal notice does not mean a court case. It is a documented demand from an advocate, sent as an e-notice and by registered post, that sets out the debt, the interest and the next steps if unpaid. FundRaksha sends it within 24 hours; 60% of cases settle at this stage. India's No.1 B2B payment recovery company, trusted by 1,000+ businesses.
What follows depends on your facts: MSME Samadhaan for registered micro and small suppliers, a Section 138 complaint if a cheque bounced, or a summary suit on the invoices. See how to recover money without court for the settlement-first approach, and payment recovery for the full service.
Set up so the next due date is respected
- Put the due date and interest clause on the invoice itself
- Send a statement of account on the 1st of every month and ask for confirmation
- Use Udyam registration if you qualify; it changes the buyer’s legal position
- Automate reminders: FundRaksha Collect at https://collect.fundraksha.com follows up invoices at a 1% fee, before anything becomes a legal matter
A free consultation covers both the current overdue invoice and your follow-up process.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.