Credit days

Hi

Yesterday I had an incident. I got a contractor to do repairs and paid 50,000/- advance and after the work is completed he's asking me his balance 1,50,000/- ASAP???? WHY? all companies run on credit as per working capital. I cleared it today. My question, is there any under section that I can explain a contractor in the future that establishing credit days is mandatory as per the statutory acts. Plus I'm holding payments to improve my working capital. 

Txs

Replies (2)
Quick Summary
This discussion explores the possibility of legally mandating credit days for contractors, similar to how companies manage their working capital. The original poster faced a situation where a contractor demanded immediate payment upon completion, prompting a query about statutory acts or agreements that could enforce credit periods for future projects. Suggestions include formal legal agreements with clear terms and conditions regarding payment schedules.

My suggestion is you Can make an legal agreement with Contractor company with Certain Terms and conditions including credit period. Normally certain companies make an agreement with Goods supplier or Services provider.

This my suggestion you Can take others opinion as well.

No one believes in going concern with adequate working capital ratio I guess. 

When going is a concept, finance laws must be amended. 

Basil also doesn't address cause it's out of their purview. 

 

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