What should the company do if it defaults on the payment to the supplier?

Legal analysis: bring a lawsuit to the court. If there is an agreement on the jurisdiction of the court, a lawsuit shall be brought in the agreed court. If there is no agreement on the jurisdiction of the court, a lawsuit shall be brought in the place where the defendant is located. Prepare the indictment, evidence materials and subject matter materials of the original defendant for prosecution. The main materials of the original defendant include business license, organization code certificate and ID card. The evidence materials submitted shall be one for each defendant and one for the court, and the materials shall be fully prepared. The statute of limitations for recovering arrears is two years. If the prosecution period of two years has passed, the right to win the case will be lost. However, if there is evidence that it has been recovered within the limitation period, the limitation period will be interrupted and recalculated for another two years. Litigation may take a long time to solve the dispute, if it can be solved through consultation.

Legal basis: Article 188 of the Civil Law of People's Republic of China (PRC) requests the people's court to protect civil rights, and the limitation of action is three years. Where there are other provisions in the law, those provisions shall prevail. The limitation period of action shall be counted from the date when the creditor knows or should know that the right is damaged and the debtor knows it. Where there are other provisions in the law, those provisions shall prevail. However, the people's court shall not protect the rights that have been damaged for more than 20 years. Under special circumstances, the people's court may decide to extend the time according to the application of the obligee.