Corporate debt collection succeeds when the demand reaches the people who carry the risk: directors, the CFO, the company secretary and the auditors. FundRaksha's advocate sends a notice within 24 hours that cites the MSMED Act, Section 43B(h), GST credit reversal and the intended forum, then negotiates with the finance function. 60% of cases settle before filing; the fee is 30% of recovery only.
Why companies pay late, and what actually moves them
In most companies, late payment is a policy, not an accident. Payables are stretched to manage working capital, and suppliers who do not escalate are paid last. Your reminders go to an accounts payable inbox designed to absorb them. What moves a company is risk to the people who run it: a disclosure in the audited accounts, a qualification from the auditor, a litigation entry in due diligence, or a personal exposure for a director.
A FundRaksha notice is addressed to those people. It is copied to the registered office, the directors on record and, where appropriate, the company secretary. It is written so that the finance head can forward it to the CFO with one line: we should settle this.
The corporate pressure points in a FundRaksha notice
- MSMED Act disclosure. Companies must report unpaid MSME dues and interest in their financial statements and file MSME Form 1 with the Registrar every half year. Unpaid interest at three times the RBI bank rate becomes a reportable liability.
- Section 43B(h). The expense is not deductible in the year incurred if the MSME supplier is paid late. Tax teams act on this quickly.
- GST credit reversal. Unpaid after 180 days, the company must reverse the input tax credit claimed on your invoice, with interest.
- Director liability. For bounced cheques, the signatory and those in charge of the company's affairs can be prosecuted personally.
- Litigation record. A filed suit or Samadhaan reference appears in due diligence for lenders, investors and acquirers.
None of these are threats; they are the law, stated accurately with the amounts filled in. That is why they work.
Collecting from different kinds of companies
| Buyer | What works | Forum |
|---|---|---|
| Large listed or MNC company | Notice to CFO and company secretary; MSME disclosure and 43B(h) angle | MSME Samadhaan or commercial court |
| Mid-size private company | Notice to directors; GST reversal; negotiation on undisputed balance | Summary suit, Samadhaan, arbitration |
| Group company or SPV | Trace the contracting entity; notice to parent where it guaranteed | Suit against the right entity |
| Company under stress | Act fast, secure acknowledgement, file before insolvency | Suit; claim in CIRP if it begins |
The free consultation identifies which situation you are in before any notice is sent.
Our process for corporate buyers
- Free assessment, including a check of the company on FundRaksha Trust for GST status, filing record and existing court cases.
- Advocate assigned and legal notice sent within 24 hours to the registered office and directors.
- Negotiation with the finance function, with disputes answered in writing and a settlement or payment schedule recorded.
- Filing on MSME Samadhaan, a summary suit in the commercial court, or arbitration under the contract, and execution of the award or decree.
No upfront fee. 30% of the amount recovered. Court fees, where a matter is filed, are quoted in advance.
Related services and where we work
Suppliers to companies also use accounts receivable collection to hand over a whole ledger, and buyer credit check before extending new credit. We work across India; see Delhi, Gurugaon and Bengaluru, or the corporate debt collection agency in Chennai page. Book a free consultation to begin.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.