MSME Debt Recovery

MSME Debt Recovery Specialist

MSME Debt Recovery Specialist

Recovery of Advance Money paid to Vendors

Recovery of Advance Money:

  • Advance money is a payment made by a client or employer to a contractor or supplier before completing the work or delivering goods/services.
  • Recovery of advance money occurs when the contractor/supplier fails to fulfill their obligations.
  • The client/employer can recover the advance money by:
    1. Deduction from future payments
    2. Offset against damages/claims
    3. Direct refund demand
    4. Legal action (if necessary)

 

Conditions for Recovery:

  • Non-performance or breach of contract by the contractor/supplier.
  • Failure to deliver goods/services as agreed.
  • Insolvency or bankruptcy of the contractor/supplier.
  • Cancellation of contract due to default.

 

Precautions:

  • Clearly define advance payment terms in the contract.
  • Establish milestones and payment schedules.
  • Include a refund clause in case of non-performance.
  • Monitor progress and enforce contractual obligations.

 

Note: Advance money recovery processes vary depending on the contract, jurisdiction, and circumstances.

 

We have an expertise and can help you release your retention money.