Client’s Testimonial
“After less than a month, they had recovered the vast majority of our money, always maintaining constant communication and with a superb service. They defended our position with loyalty and professionalism. The delinquent customer was a multi-million-dollar company with connections high up in the industry. It was no easy pick, and yet they accomplished its mission fast in our Aerospace Debt Recovery.”
Recovery Highlights
It’s not every day you get confronted with cases where engineering observations transform into payment disputes.
When a respected space sustainability firm delivered a mission-critical Power Control & Distribution Unit (PCDU) to a customer in Ecuador, the component met every technical requirement and passed final performance testing. Yet, the final 20% of the contract, $39,000, was withheld.
The reason? A cosmetic “dust” concern, despite no rejection within the UCC-mandated window and full functional acceptance.
After three months of silence, delays, and circular communication, the client turned to Cedar Financial. In just 12 days, Cedar not only recovered the full disputed amount, but we also secured an additional $51,500, delivering a $90,500 recovery through strategy, speed, and legal leverage.
The Challenge
The client, a U.S.-based engineering firm, had been working on a high-specification PCDU for a commercial satellite. The unit passed all thermal, vibration, and functional tests, verified by joint engineers from both companies. The contract was clear: 80% payment upon delivery, 20% upon final acceptance.
In December 2024, however, the other side raised an unexpected objection, minor “dust contamination” on a non-critical panel. Though purely cosmetic and irrelevant to performance, the buyer used this as justification to withhold payment, referencing UCC §2‑606, which governs product acceptance standards.
For 90 days, the client attempted resolution through project managers, account liaisons, and procurement staff. They received vague responses, repeated deferrals, and eventually, radio silence.
Faced with operational cash flow pressure and the risk of a damaged customer relationship, they contacted Cedar Financial.
Recovery Timeline
Cedar Financial’s aerospace recovery strategy was a dual-pronged approach blending legal knowledge with business diplomacy. The mission was not only to secure payment, but to do so without litigation and without destroying the customer relationship.
March 10: Reframe the Complaint
Cedar issued a formal UCC §2‑606 compliance demand, citing:
- Clear acceptance through performance testing
- No rejection within the 30-day statutory period
- Precedent cases validating acceptance in cosmetic-only disputes
March 11: Bypass Gatekeepers
Through enhanced skip-tracing, Cedar identified and directly contacted their Director of Operations and Head of Accounting. This ensured the case reached those with both authority and interest in avoiding escalated legal exposure.
March 12: Empowerment & Authorization
The client issued Power of Attorney, enabling Cedar to negotiate and finalize settlements directly, eliminating delays from back-and-forth approvals.
March 13-16: Anchored Negotiation
Cedar opened with a settlement anchor of $95,000, strategically higher than the disputed amount. Their rationale included:
- Legal risks of bad faith rejection
- Potential litigation exposure
- Accrued interest and operational disruption
- The cost of negative reputation in a niche aerospace market
They initially countered with a token offer of $20,000. Cedar responded with pinpoint accuracy, contract clauses, performance logs, and formal rebuttals. The tone remained firm but professional.
March 17: Close the Deal
Cedar negotiated a final payment of $90,500, to be wired within 48 hours. The debtor complied. A mutual release letter was signed. The business relationship was preserved.
Partner Feedback
“Cedar Financial combined deep UCC expertise with practical negotiation. Their clear process, timely updates, and decisive action enabled us to close this account in under two weeks when we had been stalled for months. We recommend them without reservation for complex commercial recoveries.”
Key Learnings
- Aesthetic Isn’t Legal
Cosmetic objections hold no weight under UCC if performance is accepted and not timely rejected. Framing this effectively was key.
- Speed Starts with Access
Cedar’s skip-tracing cut out months of delay by reaching people empowered to act.
- Negotiation is a Calculated Dance
By leading with a strong, justified counter-anchor, Cedar expanded the negotiation zone and elevated the final outcome.
- Relationships Matter
While firm in approach, the tone remained resolution oriented. This preserved trust and allowed for future business continuity.
Need Help with a Commercial Dispute?
Whether you’re in aerospace, technology, or advanced manufacturing, when disputes stall your cash flow, Cedar Financial’s UCC-compliant recovery process delivers swift, strategic results without litigation.
