Chinese manufacturer refuses any payment arrangement - what would you do?
I placed a production order, paid a 30% deposit, and the goods are finished. Due to unexpected major cash flow issues, I can't pay the remaining balance immediately. (no loan possible either)
I've offered several alternatives, including:
- releasing the portion already covered by my deposit,
- releasing the full shipment under a written deferred payment agreement,
- paying the balance in instalments.
- Storing the goods for me for a storage fee until I can pay the remaining balance.
The sales manager has refused every proposal and insists on full payment before releasing anything. They also said that if I don't pay by the end of this month, they will sell the goods to another customer.
The contract doesn't address what happens in this situation. I own the branding, logo, designs, tech packs, and all related intellectual property. However, the trademark is not registered in China.
Has anyone dealt with something similar?
- Are they likely bluffing about selling the goods?
- Can they legally sell branded goods produced for my company if the contract is silent on ownership?
- Is there another solution you've seen work in practice with Chinese factories?
Any advice or experience would be appreciated. Thanks!