Outsourced accounts receivable collection with FundRaksha works in tiers. Buyers under 60 days overdue get WhatsApp, SMS and email reminders and payment mandates through FundRaksha Collect at a 1% success fee. Buyers who are silent or past 90 days move to FundRaksha Legal: notice within 24 hours, negotiation and filing, at 30% on recovery. Nothing is paid upfront at either tier.
Why in-house AR follow-up stalls
Receivables follow-up is usually done by the same people who process sales and raise invoices. They are busy, they are junior to the buyer's purchasing manager, and they have no power to escalate. Reminders go out irregularly, the hard conversations are postponed, and the 90-plus column of the ageing report grows every quarter. Meanwhile limitation runs, and a receivable that could have been recovered becomes a write-off.
Outsourcing fixes the discipline problem and the escalation problem at once. Reminders go out on schedule without anyone having to remember. And when a buyer ignores them, an advocate, not a sales executive, makes the next call.
How the tiered model works
| Ageing bucket | Action | Who | Fee |
|---|---|---|---|
| Not yet due to 30 days | Pre-due and due-date reminders; UPI Autopay or NACH where set up | FundRaksha Collect | 1% of collections |
| 31 to 90 days | Escalating reminders, statement of account, call from the recovery desk | FundRaksha Collect | 1% of collections |
| Over 90 days, or buyer silent | Legal notice within 24 hours, advocate negotiation | FundRaksha Legal | 30% on recovery |
| Notice ignored | MSME Samadhaan, summary suit, Section 138 or arbitration | FundRaksha Legal | 30% on recovery; court fees extra |
You decide which buyers move between tiers; we recommend, you approve. Key accounts can be kept at the reminder tier for longer if the relationship warrants it.
Onboarding your ledger
- Free consultation: share your ageing report (Tally, Zoho, Busy or Excel export). We review it and tell you what is recoverable and how.
- Set up Collect: buyer contacts, invoice data and reminder schedules are loaded; mandates are offered to buyers who agree.
- Triage: overdue and silent accounts are listed for legal recovery, with documents gathered for each.
- Notices out within 24 hours for the legal tier; reminders start the same week for the rest.
- Monthly report: collections, settlements, filings and the updated ageing.
Receivables close to three years old are prioritised for notice so that an acknowledgement can be obtained before limitation expires. Check your dates with the limitation period calculator.
Measuring the result: DSO and write-offs
Two numbers tell you whether receivable management is working: days sales outstanding (DSO) and bad debt written off. Reminders and mandates shorten DSO because buyers pay on the due date rather than when chased. Legal recovery shrinks write-offs because receivables that would have been given up are pursued, with interest. Try the DSO calculator to see what a 15-day improvement is worth in working capital for your turnover.
FundRaksha reports both numbers to you each month, so the engagement pays for itself visibly or you stop it.
Who this suits
Businesses with 20 or more credit customers and a growing over-90 column: distributors, manufacturers, FMCG distribution companies, staffing and facility firms, and service providers billing monthly. For a single large debt, payment recovery is the simpler entry point. For a city example see accounts receivable collection in Bengaluru. Start with a free consultation.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.