A recovery agent has no legal power. They cannot serve a notice that counts, cannot file at the Facilitation Council or a court, and cannot claim statutory interest for you. Their only tool is pressure, which companies ignore and which can expose you to harassment complaints. What works on business dues is an advocate: a legal notice that puts the buyer on record, negotiation backed by the real consequences (Samadhaan, Section 138, a suit), and filing when needed. FundRaksha does this with no upfront fee, 30% only on recovery.
Why agents fail on business dues
- No consequence. A company that ignores your calls will ignore your agent’s. There is nothing behind the pressure.
- Wrong target. Agents chase the person who placed the order; the decision to pay sits with finance or a director, who respond to legal documents, not visits.
- No statutory tools. Agents cannot claim MSMED interest, cannot file Samadhaan, cannot start Section 138, cannot sue.
- Upfront fees and no accountability. Many agents charge a retainer and report “follow-up in progress” indefinitely.
- Risk to you. If the agent threatens or embarrasses the buyer, the buyer can complain, and your legitimate claim becomes a dispute about your conduct.
What the buyer actually responds to
A legal notice from an advocate, served at the registered office and marked to the directors, is read by people who did not take your calls: the accountant, the compliance officer, the owner. It states the debt, the interest and the specific next step, and it is sent within 24 hours of FundRaksha receiving your documents. About 60% of cases settle at this stage, because the buyer can see the cost of not settling. India's No.1 B2B payment recovery company, trusted by 1,000+ businesses.
Read how to send a legal notice for payment for what goes into it.
Agent versus advocate-led recovery
| Recovery agent | FundRaksha (advocate-led) | |
|---|---|---|
| Legal notice | Informal letter, no standing | Advocate’s notice, served and recorded, within 24 hours |
| Statutory interest (MSMEs) | Cannot claim | Computed and claimed; Facilitation Council reference filed |
| Bounced cheque | Cannot act | Section 138 notice and complaint within the deadlines |
| Court or Council | Cannot appear | Dedicated advocate appears wherever the matter is heard |
| Fee | Often upfront or monthly | 30% of the amount recovered; nothing upfront |
| Buyer relationship | Pressure tactics, risk of complaint | Professional, documented, relationship preserved |
What to do if an agent has already been involved
- Stop the agent in writing and collect whatever records they have of contact with the buyer
- Check whether the buyer has complained anywhere; if so, tell the advocate
- Check the dates: any cheque return memos (30-day window), the due dates (3-year limitation), any written acknowledgements
- Hand the complete file to FundRaksha; the notice resets the conversation on a lawful footing
If the agent took an upfront fee and did nothing, that is a separate claim against the agent; the advocate can advise.
Start the right way
Book a free consultation. FundRaksha assesses the case honestly, tells you the route and the realistic timeline, and charges nothing until money is recovered. See B2B debt collection for the full service and how to recover money without court for how most cases end.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.