Pillar Guide
Commercial Receivable Recovery
Commercial receivable recovery is the process of converting unpaid business dues, invoices, contract payments, project receivables, into actual cash through negotiation, legal action and enforcement. With litigation finance, the recovery is pursued without the creditor bearing the ongoing legal cost.
Executive Summary
Unpaid receivables are one of the most common ways Indian businesses lose enterprise value. Writing them off is often a liquidity decision, not a legal one: the claim is sound, but the cost and delay of recovery feel unaffordable.
Treating a receivable as a recoverable asset changes the decision. If the documentation is strong and the counterparty can pay, the claim can be assessed, funded and pursued through a managed legal process, while your working capital stays in the business.
From unpaid invoice to recovery
- 1
Document the claim
Contracts, purchase orders, invoices, delivery proof, ledgers and correspondence.
- 2
Assess recoverability
Merits, counterparty capacity, limitation and enforcement route, before spending further.
- 3
Choose the route
Demand and negotiation, summary suits, commercial courts, arbitration or insolvency, as appropriate.
- 4
Fund the pursuit
Eligible claims are funded so recovery does not compete with operations for cash.
- 5
Enforce and recover
A decree or award is only the midpoint, execution converts it into money.
Write-off vs funded recovery
| Write-off | Funded recovery | |
|---|---|---|
| Cash impact today | Loss booked | No self-funded legal cost for funded matters |
| Upside | None | Recovery of principal, often with interest/costs as awarded |
| Management time | None | Handled within a managed litigation process |
| Balance-sheet signal | Value destroyed | Claim treated as a recoverable asset |
Receivable recovery readiness
- Written contract or purchase order for the supply
- Invoices raised and acknowledged, with delivery evidence
- A payment trail or admissions (emails, part-payments, ledger confirmations)
- Claim within limitation
- A counterparty that is solvent or has attachable assets
Frequently asked questions
What size of receivable is worth pursuing? ▾
It depends on documentation, counterparty capacity and cost proportionality. The eligibility assessment gives a claim-specific indication rather than a blanket threshold.
Which legal routes are used for B2B dues in India? ▾
Depending on the case: demand notices and negotiation, summary suits, commercial courts, arbitration where the contract provides for it, and insolvency proceedings in appropriate cases.
How long does recovery take? ▾
Timelines vary widely by forum and dispute. Part of the assessment is an honest view of the likely duration and how that affects commercial viability.
Do I pay legal fees during the case? ▾
For funded matters, litigation costs are covered under the funding arrangement; repayment is contingent on recovery.
Can old, stuck receivables still be recovered? ▾
Sometimes, limitation and evidence are the deciding factors. An assessment establishes whether the claim is still practically recoverable.
Related Guides
Assess your claim's recoverability
A free, structured, 5-step assessment of whether your claim may qualify for funding. Preliminary indication only, subject to due diligence.
Check Your Claim Eligibility