Your real question is what does your terms and conditions say? You should enforce what they say to the letter. If a business cannot live up to the terms and conditions you both agreed upon at the start of the process they represent a risk to your continued existence. Unless you are independently wealthy continuing to do business with such a firm will cost you money without any hope of ever seeing it. Stay professional and do not threaten to "expose them". Doing so opens yourself to liabilities you probably do not wish.
If you have no terms and conditions, you should not be in business.