PR Firms Speak Up: The Challenge of Unpaid Dues

PR professionals share their insights on the persistent issue of unpaid client dues, particularly in the startup and real estate sectors, and discuss potential solutions to address this challenge.

Unpaid DuesPr FirmsStartup PaymentsReal EstateClient GovernanceReal EstateJul 16, 2025

PR Firms Speak Up: The Challenge of Unpaid Dues

Real Estate:Earlier this month, an Indian PR firm took the unusual step of calling out its client for unpaid dues. This sparked an intense conversation on the widespread challenge of unpaid dues. PRmoment India spoke to a range of PR firm founders and professionals on how persistent the challenge is and what solutions can be put in place.

Vikram Kharvi, CEO of Bloomingdale PR, says that while larger firms have better options to handle unpaid dues, the problem is widespread across sectors. While firms with good governance and strong norms are less likely to hold back payments, startups and real estate are sectors that delay payments. Kharvi suggests doing due diligence before taking on new clients.

Unpaid dues remain a persistent issue in the communications industry. While all agencies are vulnerable, mid-size and boutique firms are particularly impacted. Larger agencies typically have access to legal recourse, stronger contracts, and greater influence. For smaller agencies, where every project is deeply personal and resourcing is lean, the impact is far more severe. We live in a digital age where social media can amplify a brand overnight, but the credit for that visibility often bypasses the team behind it.

What’s worse—when dues aren’t cleared, agencies still have to honour payments to stringers, freelancers, and vendors, and ensure salaries go out on time. That financial pressure is real. The hard work, creativity, and emotional investment poured into every campaign often go unrecognised when clients delay or deny payment. For boutique agencies, this isn’t just a business issue—it affects sustainability and the dignity of the profession.

Voicing unpaid dues on social media is an extreme measure—and often a last resort. Agencies don’t take this step lightly. But when prolonged silence, repeated follow-ups, and every professional route have been exhausted, speaking up becomes necessary to uphold fairness and accountability within the industry. Transparency around non-payments is not about naming for the sake of it—it’s about protecting others in the ecosystem. It encourages due diligence, sets clear expectations, and reminds everyone that professional commitments are important. Ultimately, this is not about burning bridges—it’s about fostering a culture where integrity is non-negotiable and standards are upheld for the collective good.

Unpaid dues aren’t just financial gaps— they’re breaches of creative dignity. This isn’t about one agency or one invoice. It’s about the silence that’s enabled a system where creative professionals are asked to deliver, build, and show up while payments are delayed, paused, or quietly buried under ‘internal conversations’. The truth? Some of the worst offenders are brands with funding, legacy names, and loud promises, but no accountability.

As an agency founder, I’ve seen this firsthand. And while we’re often told to ‘stay quiet’ or ‘let it go,’ I believe the time has come to stand tall, not just for myself, but for our entire industry. What’s the way forward? A legal backbone for MSMEs, a public, shared platform for overdue payments, an ecosystem where clients are background-checked too, not just agencies. And most of all, solidarity among us, the ones doing the actual work. Before blaming the agency for what didn’t get done, perhaps pause to ask: how many times has the brand diluted its vision, changed course without clarity, or treated marketing like a sprint to sales rather than a story in motion?

Let’s stop normalising delay. Let’s start demanding dignity without having to beg for it.

One of the biggest challenges in recovering unpaid dues is a lack of recourse. To effectively take up the challenge of long-pending unpaid dues, PR firms need access to affordable legal aid, which is tough to obtain. Additionally, there is a limited number of lawyers who understand the nature of the PR sector. You have specialists in media and copyright law, but not really for communications and PR.

If you are an MSME PR firm, you can, of course, file a complaint about pending dues on the MSME Samadhan portal. This online platform allows you to register a complaint and track its progress through the Micro and Small Enterprises Facilitation Council (MSEFC). However, the process can take time, sometimes as much as two years, to get a response and requires producing multiple hard copies of several documents as evidence. Therefore, suggests the setting up of a database of key offenders tracked by the DI (Director Identification) numbers.

PR firms face a very specific challenge in recovering dues, as there is no way to pressure the client for unpaid dues beyond opting for the legal path. In advertising, the Advertising Agencies Association of India works with the Indian Newspaper Society to flag off repeat offenders, which can directly impact the publishing of ads in print media. In PR, no such option is feasible. While unpaid dues exist across all client sectors, the worst offenders are startups and real estate. Established firms are usually good about payments, which have fixed processes of payment processes. These can be in 30, 60 or in some cases 90 days.

There’s no silver bullet, but I feel these 3 proactive measures can significantly reduce the risk of such unpleasant situations. Work with someone you know relatively better; referral-based clients often turn out to be more reliable than those acquired through cold pitches or casual networking at events. Maintain a data trail as it does wonders; hence, ensure keeping track of deliverables, results, and all correspondence. Data is your best defence when clients question outputs or delay payments. Follow invoice discipline by submitting invoices promptly and following up. You must also understand your client’s internal payment cycles and align your process accordingly. Remember, the comms lead may be empathetic but still bound by corporate protocols.

Unpaid or delayed payments by clients are not just transactional issues—they are serious systemic disruptors. This impacts every layer of an agency’s health, especially the core team working on the account; further, it snowballs to talent retention, cash flow, morale, and growth capital. Despite well-documented contracts and quality deliverables, agencies often hesitate to take firm steps like ‘Stop Work’ due to fear of reputational backlash or strained relationships.

The solution lies in a 360° approach. Proactive documentation—clearly defined contracts, delivery logs, and approvals—is non-negotiable. Strict enforcement of payment milestones must be normalised. Service pause protocols should be formally embedded when dues lapse beyond a set period. Transparent, respectful dialogue must precede escalations, but non-payment cannot be normalised. If diplomacy fails, legal demand notices and IP rights enforcement can offer leverage.

Equally important is a cultural shift—agencies must stop romanticising resilience at the cost of fairness. Professional respect must reflect in financial discipline, too! Ultimately, good work deserves a timely reward. Agencies cannot—and should not—bear the brunt of a small player to billion-rupee brands defaulting on the mutually agreed fee-retainership or project work. Payment is not goodwill; it is an obligation. And if that principle is not protected, the very foundation of value exchange in this industry erodes.

Frequently Asked Questions

What sectors are known for delaying payments to PR firms?

Startups and real estate are sectors known for delaying payments to PR firms. Established firms with good governance and strong norms are less likely to hold back payments.

What can PR firms do to protect themselves from unpaid dues?

PR firms can do due diligence before taking on new clients, maintain a data trail, follow invoice discipline, and consider using legal recourse or platforms like the MSME Samadhan portal.

Why are mid-size and boutique PR firms more vulnerable to unpaid dues?

Mid-size and boutique PR firms are more vulnerable because they typically have limited resources and access to legal recourse, making each project more critical to their sustainability.

What is the MSME Samadhan portal, and how can it help PR firms?

The MSME Samadhan portal is an online platform where PR firms can register complaints about unpaid dues and track their progress through the Micro and Small Enterprises Facilitation Council (MSEFC).

What cultural shift is needed in the PR industry to address unpaid dues?

The PR industry needs a cultural shift where agencies stop romanticising resilience at the cost of fairness and ensure that professional respect reflects in financial discipline.