A vendor recovers pending payment by sending a legal notice through an advocate, claiming interest (statutory for MSMEs, contractual or reasonable for others), and then filing in the right forum: MSME Samadhaan, a Section 138 complaint if a cheque bounced, or a summary suit on the invoices. FundRaksha does all of this for 30% of the recovery, nothing upfront, and sends the notice within 24 hours.
The vendor's position: weaker than it looks, stronger than you think
Commercially, a vendor is weak. The customer is bigger, controls future orders and can replace you. Legally, the vendor is strong. You have delivered, you have the documents, and the law gives you remedies that the customer cannot avoid by ignoring emails. The gap between the two is why so many vendors carry unpaid ledgers for years: they fear the commercial consequence and underestimate the legal power.
FundRaksha closes that gap by handling the escalation for you. The customer deals with an advocate, not with your sales team, and the relationship is kept professional on both sides.
Vendor payment problems and their remedies
| Problem | Remedy | Fact to know |
|---|---|---|
| Customer pays 90 to 180 days late, every time | MSME notice and interest claim; Collect reminders and mandate for future | Interest at three times RBI bank rate for Udyam vendors |
| Customer has gone silent on a large final bill | Legal notice within 24 hours, then summary suit or Samadhaan | Summary suit: customer must get leave to defend |
| Customer gave a cheque that bounced | Section 138 notice within 30 days of return memo | Up to two years imprisonment or twice the amount |
| Customer deducts unexplained amounts from every payment | Ledger reconciliation by the advocate, notice for the short-paid balance | Unilateral debit notes are not binding without agreement |
| Customer disputes quality months later | Notice relying on acceptance without timely objection | MSMED Act: acceptance deemed after 15 days without written objection |
What the FundRaksha process looks like for a vendor
- Free consultation: send the invoices, PO, delivery proof and the customer's messages. We tell you the recoverable amount with interest and the best route.
- Advocate assigned, legal notice sent within 24 hours by e-notice and registered post.
- Negotiation with the customer's accounts and management; most pay or sign a plan here.
- Filing if needed, appearances by the advocate, and enforcement of the order.
You pay 30% of what is recovered and nothing before. Court fees, where a matter is filed, are told to you upfront. The recovery fee calculator shows the arithmetic.
Protecting the relationship while recovering the money
Many vendors want to keep the customer. That is compatible with recovery, and we handle it in three ways. First, the notice is factual and professional, not accusatory. Second, the advocate can propose a structured settlement that gives the customer time while securing your position with post-dated instruments or an acknowledgement. Third, continuing supplies can be moved to advance payment or a UPI Autopay mandate through FundRaksha Collect, so the old ledger and the new business are kept separate.
Vendors who do this find that the customer treats them with more respect, not less.
Vendors we work with
Raw material and component suppliers, packaging vendors, printing houses, staffing and facility contractors, software vendors and maintenance providers across India. For a city example see vendor payment collection in Hyderabad. If you are a Udyam-registered vendor, read MSME debt recovery as well, then book a free consultation.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.