Debt Recovery for Manufacturers
You delivered the goods. We help you collect the payment — from dealers, distributors, and industrial buyers — without burning the relationships your order book depends on.
Why manufacturing receivables get stuck
₹7.34 lakh crore was locked in delayed payments to Indian MSMEs as of March 2024 (GAME–FISME–C2FO Delayed Payments Report, 2024). Most of it looks like this:
Goods delivered, payment stalled
Material shipped against a PO, delivery challan signed — and the payment still slips quarter after quarter while your working capital sits in someone else's plant.
Late quality claims used as leverage
A complaint about quality or specifications appears only after the invoice falls due — turning a payable into a dispute. (If you're a registered MSE, the law has a specific answer to this — see below.)
Dealer and distributor chains
Indian distribution runs on trade credit — manufacturer to distributor to dealer. When your distributor's own buyers squeeze him, that squeeze cascades up to your invoices.
The rights most manufacturers never use
If you're a Udyam-registered micro or small enterprise, Indian law is more firmly on your side than most buyers admit — and most suppliers never invoke it, fearing lost business. Used well, these levers get invoices paid without ending the relationship.
The 15-day objection window
If your buyer raised no written objection within 15 days of delivery, the goods are legally 'deemed accepted' — a quality complaint raised at day 60 to justify non-payment has no footing under the Act.
Payment is due in 15–45 days
With no written agreement, payment is due within 15 days of acceptance. Even a written agreement cannot stretch the credit period beyond 45 days — any longer term is void to that extent.
Interest your buyer can't contract away
Overdue amounts accrue compound interest (monthly rests) at three times the RBI bank rate — automatically, regardless of what your agreement says, and it isn't tax-deductible for the buyer.
Your unpaid invoice is their tax problem
Since FY 2023-24, a buyer cannot claim the expense deduction for purchases from micro and small enterprises until they actually pay you within the MSMED timelines. Your outstanding invoice inflates their taxable profit — a lever their CFO understands.
What the courts have said
Even if your contract has its own arbitration clause, a registered MSME can still take an unpaid-invoice dispute straight to the MSME Facilitation Council — the buyer can't use the contract to block it.
A buyer who wants to challenge a Facilitation Council award in court must first deposit 75% of the awarded amount — no deposit, no challenge. This makes awards very hard to stall.
The Act's protections only cover transactions made while you're registered — so register as an MSME before you sign the contract and supply, not after the payment gets stuck.
General information, not legal advice. MSMED payment protections apply to registered micro and small enterprises; Section 43B(h) applies to purchases from micro and small enterprises (not medium). Case summaries are simplified. We assess what applies to your specific case in the free consultation.
How we recover manufacturing receivables
Documentation review
We start with your paperwork — invoices, purchase orders, delivery challans, and correspondence — because in manufacturing disputes, proof of delivery and the acceptance timeline decide the conversation.
Structured recovery
Professional multi-channel outreach on a documented escalation ladder: accounts teams first, then finance heads and directors. Firm, respectful, and relationship-safe.
Dispute resolution
Where a quality or delivery dispute is blocking payment, we gather documentation from both sides and work towards a settlement — separating genuine issues from delay tactics.
Legal escalation when needed
If softer approaches fail, we issue formal legal notices and, where required, pursue litigation through our partner advocates — and for eligible MSEs, that includes the MSME Samadhaan route, where a buyer must deposit 75% of an award just to appeal it.
Success-based pricing applies here as everywhere: no upfront fees — you pay only on recovery. See how pricing works.
"Ricapio's systematic process and on ground execution has helped us recover 80% of our vintage 3 year old receivables."