We have FULLY paid for 2 shipments, and received only one. We were late paying for #3 (in advance of receiving #2, for which we have already fully paid.) There is never any credit extended to us (despite doing several hundred thousands of dollars of business with them).
Labor is the vast majority of the manufacturing process, so making the argument that they could have taken a loss on raw materials is impossible. As I said, I appreciate our timing could have caused some financial harm and we are happy to negotiate, but I don't think she is interested. I think she is thinking, hmmmm....it would take me 2 years to make $50k on this deal...or, I could make it instantly, without the hassle. That is honestly what I think.
You're 100% right on the lawyer though, that's for sure. Sigh
Sorry to say so, but this sounds like a classic case of 'a stitch in time saves nine.' I appreciate that you were nervous, but you should have brought in outside help/advice when you first realized you had a cash flow problem. They may have been scamming you, but then again you may have caused them a major cash flow problem; manufacturing margins are relatively slim, and $50,000 is a lot of money by Chinese standards. Suppose the factory has had difficulty paying its workers or your broker has been prosecuted over unpaid bills? At the very least, your broker has suffered a major loss of face, and serious damage to her commercial reputation. Meanwhile, you have not just lost $50,000, you appear to have lost your entire supply chain - and it's possible that you now have a reputation as a buyer who doesn't pay on time, and will have difficulty negotiating terms with alternative suppliers in addition to the more generic problem. Although you might have had to spend a few thousand for legal assistance a few months ago, look how much more it has wound up costing you.
So, get help immediately. A lawyer is like a doctor for your business in this situation, and your business has developed a serious problem. As well as the legal costs, you may have to pay compensation to your Chinese broker or supplier, and possibly go there in person to demonstrate your sincerity and restore their reputation as well as yours. You should also be exploring alternative avenues of supply, commercial credit, and how less flexible payment terms might impact your cash flow. It's going to be a lot of work. Good luck, and I hope it all works out for you and your firm.