How to avoid a cash gap due to winning the tender: a brief case
At the end of July, our company won a tender for the supply of products for one federal research and production center. Under the terms of the contract, an advance was paid, which they planned to use as part of the payment for the purchase.
We won the tender, we signed the contract, we agreed on everything with suppliers / manufacturers, we are waiting for the advance payment. But he is not and is not.Contacted with responsible persons, in response to the game of “football” between different persons and departments. The delivery time is already close, but there is still no advance payment, and here we realized that we missed an important point in the contract: the delay in paying the advance payment does not affect the delivery time of our products, but they flow from the moment the contract is concluded. Also, while waiting for the advance, the exchange rate has significantly changed in a direction that is not favorable for us. When we realized that it was not worth counting on an advance, we began urgently looking for working capital.
They could use operating funds from other deliveries, but given this counterparty’s optionalness, they didn’t want to widen the “pyramidal” cash gap, so they chose the option of lending. As a matter of urgency, we selected various loan programs in our own and other banks in order to accumulate the funds necessary for the purchase and begin the procurement process. But given the timing of the delay, there is still a chance that the counterparty can cancel the contract due to our violation of the terms and continue to add our company to the registry of unscrupulous suppliers. To avoid such crisis situations, I recommend that you agree on the terms of the tender with lawyers and identify such risks in advance.