Make sure your clients NEVER default on your payments.

Here’s how!

Recovery of stuck payments is the pain point of many businesses. Except for a few cases where the clients have genuine challenges in paying you, in the rest they don’t pay simply because they do not feel compelled to do so. Here’s how you can force them to pay:


1. TAKE QUICK ACTION: You should ideally take action the moment you see your client defaulting on your payment beyond a reasonable amount of time. Remember, the older the debt, the lesser the chances of recovery.

In case of cheque dishonor, you should issue the legal notice within 30 days and file a complaint within 45 days post that, for the best chance of recovery.

Please note, the courts do not entertain any debt recovery cases beyond 3 years.


2. CUT-OFF TIME: You should ideally send out the letters within the credit period and a notice immediately after the expiry of the same.


3. APPLY PRESSURE: You have the option to file both civil and criminal cases against your debtor. In case of habitual defaulters, only pressure works. And in case the defaulter is a company, you may file a winding up petition.

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