Q: Client holding payment? demanding 10 to 15 % amount as credit note for the supplied materials?
we went with a annual rate contract which is valid till 31.03.2020... its been going good with the client for the past 8 months... now since the automotive industry is going down, my client sales went down... my client has to payment a approximate amount of Rs 6 lakhs, our credit term with the client is 60 to 75 days,. now they are holding up the payments for the already supplied materials and now demanding to reduce 15% atleast to release the payment... they are saying they have already sourced a vendor with 20% rate reduced with our quotation...
as per our agreement, if they found better price in market, we will be given first preference to match that price, if not able to match the contract would terminate automatically...
my supply margin itself 10%, so its not possible to give discount of 15%...
now what can i do with this client
i have all the purchase order copy, contract and delivered signed copies.
any possibilities to recover my payment.
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