The tough experience to deal with a deadbeat client
In 2018, a customer sourced new gemstone jewelry supplier, reached us to find cooperation to make loose gemstones for their sterling silver jewelry. Most of them are customized design. We started from some small trial orders, then everything went on well, and they paid very fast for each order. After several pleasant cooperation, they requested to offer them better account period to next 30 days and they promised they will place large quantity bulk order after that. Based on their payment history, we agreed their new term.
As they promised, they soon placed a larger bulk order. They ordered gemstone beads, customized gemstone cabochons, and sterling silver jewelry mounted gemstone cabochons and gold plated agate druzy stones and silver plated AB color rainbow plated druzy quartz cabochons. The drusy agate cabochon rings are elegant, look fabulous and gorgeous. Total order value RMB 700,000 (Around 10,000USD), which is only a medium order for us SGJ GEMS. Based on new payment terms, they paid 200,000RMB as deposit payment, so we started the production. We allocated our best craftsmen to work on their order. 2 months later, the goods production finished.
After they receive the goods, they are happy as usual. And we expected to receive the payments one month later as usual like before. When the bill date arrive, our accountant called them to clean the bill. They said boss on business travel, not in the company, will pay after boss come back. So we wait another 2 weeks, and called again, they said too many bills to pay recently, to wait and patient a few more days, they will figure out. Such reason and excuses, delayed 3 months, we went to their company, they said boss not in the company, other company didn’t pay them, so they don’t have money to pay us. And we were very busy with the production, don’t have much time to deal with them, so we waited another 6 months. Only regularly called to check them about the status. Each time there was negative answer.
Almost delayed 1 year, we called again, they did not answer the phone, we visited their office, they said still have no money. When they have money in the future, they will pay soon. We don’t believe their lies any more. So we hired a lawyer to sue their company on the court. The first time to sue in the court, it’s very long procedure, lots of paper and document work, the long wait list, we sued the company on July 15. it was accepted with case number around August 10. then long waiting quite period with no update and news. The court sent court summons document to them, they not sign not receive, then it’s another 70 days public announcement, after that, it was time to show at the court before the judge, they didn’t send any one to reply and answer on the court. The judge made a court decision request them to pay the bill. We thought we should get back the money very soon with the court decision. The truth turned out to be, we are too young too naive. It seems they didn’t care at all about the court decision. So 15 days later, which is requested by law, we applied the Executive Tribunal to enforce coercive execution. We waited another month, the executive judge told us they investigate the company bank account, there is no funds in their account. So can not execute this case. We requested to execute from their boss account. Judge said we have to add to other shareholders or boss, or owner in the court to sue them to take joint liable responsibility.
We did as the court requested, but finally their boss didn’t have executive asset or cash as well. The case came to a dead end. The judge decided to stop the executive and the case. But we can see that, the boss has money herself, she might transferred to her husband, her parents or brothers to avoid the court executive. And they can not executive the others who not related to the case. So that’s the ending.
We had experience customers didn’t pay the bill on time before, but all of them finally paid the bill after delayed 1 month or 2, not like this. And most of them are lower amount. So didn’t go to court before. From this experience, we found sometimes even the law can’t help. Can do nothing for those liars and cheaters. That’s disappointing. I guess that’s why we sea many news that people have to use violence to get their bill paid and get their money back. That’s the old saying in China. Deadbeat is the master. I hope they can be punished by the law. But the law just let them go.
We have to accept this ending. And be more careful for the payment terms and background investigation for any payment gap extension to keep such cases in a very minimum chances to make sure we expand steady. We have to move ahead, to focus on the quality, and good reputation. to offer better service for our honest and loyal customers. we have bigger vision.
