Late and unpaid payments are one of the biggest pressures on a small business. The good news is that the law gives you clear ways to recover dues — if you keep records and escalate in a measured sequence.
A measured sequence
- Send a clear payment reminder with the outstanding amount and due date.
- If ignored, send a formal legal notice demanding payment.
- If still unpaid, pursue the appropriate recovery remedy.
- Where a cheque bounced, consider a Section 138 complaint as well.
Documentation wins recovery cases
Invoices, delivery proof, and written communication make recovery far easier. Build the paper trail as you go, not after the dispute.
Sooner is better. Delay can affect both recovery and any applicable limitation period. Start with a reminder, then escalate.