Invoice recovery starts with a legal notice itemising every invoice, its due date and the interest owed, delivered with proof within 24 hours. If the buyer does not pay, the advocate files on MSME Samadhaan (for Udyam suppliers), a summary suit on the invoices, or a Section 138 complaint if a cheque bounced. 60% of FundRaksha cases settle before filing.
Why invoices go unpaid, and why the reason rarely matters
Buyers give many reasons: cash flow, a quality query raised months after delivery, an accountant on leave, a dispute over a different order. Legally, most of these are irrelevant. Once goods are delivered or services rendered and accepted without timely objection, the invoice is payable. The only questions are how much, with what interest, and in which forum.
FundRaksha treats the invoice as what it is: a documented debt. The notice sets out each invoice number, date, amount, due date and days overdue, and the buyer has to answer each line in writing or pay.
Interest and leverage you may not know you have
- MSME interest. If you are a Udyam-registered micro or small enterprise, the buyer owes compound interest at three times the RBI bank rate from the day after the 45-day limit (or the agreed shorter date). This is statutory; it does not need to be in your contract. Work it out with the MSME interest calculator.
- Section 43B(h), Income-tax Act. A buyer cannot deduct an expense owed to a micro or small enterprise unless it is paid within the MSMED time limit. His auditor knows this.
- GST ITC reversal. A buyer who has not paid within 180 days of the invoice must reverse the input tax credit he claimed, with interest.
- Contractual interest. If your invoice or terms state an interest rate, it is claimable. If not, the court can award reasonable interest.
Our notices cite all of these. Buyers often pay the principal quickly to stop the interest and tax consequences from growing.
The invoice recovery process at FundRaksha
- Free assessment: we age your invoices, check the documents and the buyer's payment pattern, and tell you the recoverable amount including interest.
- Legal notice within 24 hours, as an e-notice and by registered post, itemising each invoice and the interest claim.
- Advocate negotiation. Disputes are answered with delivery proofs and acknowledgements; payment or a signed instalment schedule follows.
- Filing if the buyer still refuses: MSME Samadhaan, a summary suit under Order XXXVII CPC, or a Section 138 complaint.
There is no upfront fee. FundRaksha Legal charges 30% of the amount actually recovered.
Documents we need, and what to do if some are missing
| Document | Why it matters | If missing |
|---|---|---|
| Tax invoice with GSTIN and due date | Fixes the amount and the clock | Bill of supply, GSTR-1 filing and ledger can substitute |
| Purchase order or signed quote | Shows the buyer ordered | Emails or WhatsApp confirming the order |
| Delivery challan, e-way bill, LR | Shows the buyer received | Buyer's GSTR-2B showing ITC claimed on your invoice |
| Acknowledgement or part-payment | Restarts limitation, defeats disputes | Ledger confirmation request sent by the advocate |
For large or old ledgers, see old debt recovery. For a buyer that keeps paying late rather than not at all, payment reminder automation through FundRaksha Collect may be the cheaper fix.
Invoice recovery for every kind of supplier
We recover invoices for manufacturers, traders, distributors, contractors, IT and service firms, logistics operators and exporters across India. See textile, IT services and logistics for industry detail, or the invoice recovery agency in Mumbai page for a city example. Start with a free consultation: one call, an honest view of what can be recovered, no obligation.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.