Dealing with bad debts and non-payment issues is an unfortunate reality for many small businesses. In some cases, some professional and courteous conduct can help clarify any misunderstandings and get the payment issued. In other situations, politeness will not get you paid.
Where you have attempted to communicate amicably with the other party who owes you payment, or attempted negotiations but failed to come to an agreement, alternative dispute resolution may be the way forward.
What is mediation and how does it work?
Mediation is a form of alternative dispute resolution. It’s where parties attempt to resolve a dispute without going to court. Chaired by an independent, experienced mediator, parties work together to find a mutually agreeable outcome. The process is structured where the impartial mediator assists both parties to discuss the issues courteously and progressively working toward a solution to the problem. The objective of the mediation process is for parties to reach an agreement and to sign a legally binding agreement upon agreeing to a settlement in mediation.
Alternative dispute resolutions, notably mediation, is becoming a common way to begin the legal process for any civil or commercial disputes.
A cost-effective and time-efficient way to resolve non-payment issues, mediation is a sensible approach to dispute resolution. Mediation has a high potential to save a significant amount of money – with online mediation having the potential to save up to 98% when compared with conventional litigation.
It is worth considering that the other party who failed to make payment may disregard the signed mediated agreement given that they have a track record of disregarding their legal obligations to pay a debt. There is, however, a high possibility that there was a misunderstanding which could lead to a quick resolution in payment upon a successful mediation.
How online mediation is effective for small businesses
A digital form of traditional mediation, online mediation offers state of the art technology incorporating the best working elements of traditional mediation with the advantages of an online platform.
Immediation has been able to cut costs for commercial cases by as much as 98% thanks to the absence of overheads, logistics, and other cost burdens many traditional mediation providers are bound by. Given the need to have positive cash flow, small businesses can benefit significantly from the affordability of online mediation while resolving issues of non-payment.
Flexibility of schedules becomes an advantage for small businesses who have tight schedules that may not necessarily work during conventional work hours. Other advantages include the absence of inferences that would otherwise be derived in a court setting. Quick turnaround times of 30 days (as provided by Immediation) make online mediation a logical legal solution as opposed to traditional litigation. In the perspective of a small business, the quicker the turnaround time to resolve a non-payment issue, the better it is for cash flow and stress management.
Get in touch with Immediation today to find out how our expert panel of mediators can help your business with its non-payment issues.