How to Collect Money from Clients Who Won’t Pay in India

How to Collect Money from Clients Who Won’t Pay in India

Non-payment is the biggest issue that every business has to face at a certain point. People will happily take advantage of all the perks you offer, but when it comes to payment, they tend to ignore it or refuse to do so. It becomes frustrating for owners to take on the burden. They’ll have the tendency to make excuses, which is obvious, but the bottom line is, you’re not being paid.

For a business owner, it is an aspect that ruins them emotionally. They have done their work and the same with the payment should be followed promptly. By the time, the situation becomes more forceful and stressed. It is very important to find a solution and balance between providing goods and services and also getting payments on time.

For a small business owner, it is very convenient to get the options on their fingertips. You’ve a better chance of resolving any non-payment situation.

Tips on how to collect money from clients

1.Seek professional help to recover overdue invoices

Taking help from recovery agents for payments will remind your clients to make the payment. This is an important step for receiving payment rather than avoiding the response is usually slow, but with the help of a collection agency, it becomes easier for you to collect the money.

Your clients are visited personally to collect the amount, your legal matters are addressed, as well as tracing your absconded client who has been ghosted for years and years. When you hire a collection agent, you are less stressed and can focus on your cash flow.

2. Send a polite reminder email.

If a customer refuses to pay for the services you have provided, send a polite email reminder to remind them. It is advisable to keep a light tone in this email, as the client may have forgotten to make the payment.

3. Take a follow up on a call

Not all clients have time to respond you on the emails. With the number of emails they receive, they may have just missed the mail, or it may have gone to their spam section. If you have not heard back from your client, you should call them up for the follow up. The phone call you make to your clients should remind them of their payment.

4. Send a final notice letter to them

If none of these options are valid, and your customer still refuses to pay, this step will help you collect. It is in this letter that you will inform the clients that this is the final warning to pay the money they owe.

What is the problem with clients who are not paying?

Cash flow issue can be extremely damaging to the business. They like to operate in a good conduct and with the expectation that all parties will act professionally while making a payment.

It’s better to have a wise plan in place before the situation goes awry if the situation isn’t as you thought. Here, the only solution on how to collect money from clients is through getting a recovery agency on board.

How to hire a collection agency?

There are a few things to consider before you hire a collection agency

  • Firstly, you need to make sure that your collection agency is reputable and has an attractive, yet professional background before you hire them. It’s better you take references from other businesses that have used the agency, and check for online reviews.
  • On the second side, make sure the collection agency has experience collecting payments from different agencies.
  • Thirdly, ensure the agency has the reputable DRA agents and FOS (feet of street) who act in an ethical, legal and professional manner when representing your company for invoice collections. This is extremely important as the collection industry reputation has been tarnished by using unethical and illegal methods such as harassment to collect monies. Any such illegal activities can be linked back to the company that hired them and can suffer such consequences.

What legal action can you take if the client doesn't pay?

Apart from hiring a collection agency, if you want to take legal action, you may approach the local court. Depending on how much money the clients owe you, the court procedure may differ. You can begin by filing a demand letter in the court.

This is an official procedure one can take action on and you will then have a judge to decide the outcome of the circumstances. A judge will enter to give orders, and the clients have to make sure they follow those orders.


An alternative to litigation is arbitration, in which your payment is settled with the client by the arbitrator or a third party. There is no court involvement in arbitration unless there is a violation of law.

To settle an arbitration your lawyer will send a request for arbitration to your client. Once accepted and an arbitrator is appointed, the case will be presented outside the court, who will review all the evidence present by both the parties before giving a decision.


When a client is not ready or ignores to make payments, there are various sources through which you can collect that money.

Sometimes collecting money becomes a daunting yet stressful task for However, you need to opt for a source through which you can recover the amount via an invoice collection agency such as Taurus Collection. They make your work easy and flexible by physically visiting clients to recover the amount owed legally and ethically without spoiling your client relationship.

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