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Cedar Financial Secured $389K in China Without Stepping into Court

China debt recovery case study Cedar Financial recovers $389K without litigation

In the summer of 2017, a leading Southeast Asian brewery faced a troubling situation.

Despite a signed contract and goods delivered, their Chinese distributor stalled on payments. Excuses piled up in the form of market instability, detained shipments, & delayed partner funds.

What began as a routine business arrangement quickly spiraled into a major financial risk.

More than just collecting money, this case was very much about protecting reputation, preserving market access, and ensuring accountability in one of the world’s toughest jurisdictions.

That’s when Cedar Financial was called in

Case at a Glance

  • Original Debt: USD 389,098
  • Total Recovered: USD 389,068 (principal)
  • Recovery Rate: 100% of principal
  • Timeline: Less than 3 months (June 29 – October 2, 2017)
  • Jurisdiction: Chin

The Mounting Risk

The distributor’s company was legitimate and active, yet cash flow was tight. Instead of fulfilling obligations, the debtor used diversion tactics; pointing fingers at external partners, citing “market chaos,” and promising funds that never came.

For the client, the risks were clear:

  • Months could drag into years of unpaid balances.
  • Litigation in China would be slow, costly, and uncertain.
  • The hard-earned brand presence in a key market could be damaged

Cedar’s Strategy: Relentless Yet Calculated

1. Digging Deep

Cedar’s investigators quickly verified the distributor’s operational and financial status. No bankruptcy. No collapse. Just avoidance. And with facts in hand, Cedar built an unshakable foundation for recovery.

2. Turning Up the Heat

Daily phone calls. Emails. Face-to-face meetings. Diversion tactics were cut off at every turn. Cedar applied consistent, relentless pressure – making it clear that avoidance was not an option.

3. The Power of Legal Leverage

Without filing a single case, Cedar raised the stakes. The distributor was reminded of the reputational damage, legal exposure, and the risk of losing future business.

The message was conveyed in a non-aggressive way while also reminding them of the lasting consequences this non-payment could have.

4. Partnership in Every Step

The client never felt left in the dark. Every development, every payment, every strategy was communicated in real time. Cedar’s consultative approach meant the client had control, without the stress of chasing the debt themselves.

The Turning Point

  • August 2017 – The first payment arrives: USD 149,970. Proof that pressure was working.
  • September 2017 – A second transfer of USD 150,000 lands, momentum building.
  • October 2017 – The final principal payment of USD 389,068 confirmed.

In less than 90 days, Cedar Financial had turned a stalled, high-risk situation into a 100% principal recovery – without a single court filing.

Beyond Recovery: Real Business Impact

Cedar’s intervention not only recovered the debt, it also safeguarded the client’s ability to maintain future operations in China. By avoiding litigation, the client saved time, legal expenses, and reputation in a key growth market.

The distributor, once evasive, returned to the table expressing interest in continued cooperation.

Cedar’s approach achieved the ultimate balance: firm recovery with doors left open for the future.

Why This Case Matters

This was not just another collection. It was a test of persistence, strategy, and local expertise in one of the world’s most challenging markets. Cedar Financial delivered where others might have walked away – proving once again why businesses worldwide trust us to handle their toughest cases.

Key Success Factors

  • 100% principal recovered in under 3 months
  • Zero litigation costs
  • Ongoing business relationship preserved
  • Global expertise, local execution

Ready to Take Control of Your A/R?

Don’t let excuses, delays, or evasive tactics stand in your way. Cedar Financial combines global reach, local know-how, and relentless persistence to deliver the results your business deserves.

Recover Your Revenue and Retain Clients

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