About Commercial Debt Mediation

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At Commercial Debit Mediation we provide your business a mediation service which will help you resolve disputes related to unpaid debts. It's an alternative to traditional litigation and is often quicker and less costly, or even zero cost in many instances.

 The goal is to help our clients reach a mutually acceptable settlement. This prevents instruction of Legal Representatives and the time consuming and costly fees that Solicitors will charge. This process also ensures that all the correct steps have been taken as part of pre-action protocols should litigation be required.

If your business is being paid outside of terms then it is critical that you act as quickly as you can in the commencement of the mediation process.

We are trained mediators with over 30 years experience in the business of mediation and debt recovery.

1. Process of Commercial Debt Mediation:

Initial Agreement: As our client we will understand what is owed to you, the history of the debt, why it has arisen and what has caused the situation to get to a stalemate which has caused the dispute.

With your permission we will engage with the other party, the Debtor. The process is a consolidatory one to explain the legal stand point to the Debtor and find an amicable solution. We will strive to seek an agreeable solution for both parties which could entail repayment plans. At all times throughout the process we keep our clients aware of every step to ensure they are happy with the agreement and outcome. 80% of debt issues are due to lack of cash flow and this does affect both parties, so rather than jumping straight into litigation an understanding and schedule can be reached. If a payment arrangement is made all fees are payable by the party requesting the extension.

We know that debts under certain amounts, invariably £20 000 or under, can be viewed as not cost efficient to pursue through the courts and many legal avenues are not worthwhile pursuing. The usual Debt Collection process can be hit and miss with Agencies bombarding Debtors with phone calls, letters and texts, which we believe causes the adverse of the intended effect and pushes the Debtor further away from the realisation that talking to people is a much better and more successful way to ascertain what the situation is and to find a successful resolution.

We know that getting people talking is the key. 

2. Advantages of Commercial Debt Mediation:

Cost-Effective: Mediation is generally cheaper than court proceedings.

Faster: Unlike litigation, which can take months or even years, mediation can resolve issues in a matter of days or weeks.

Confidential: Mediation is private, and the details of the dispute remain confidential.

Control: Both parties have control over the outcome, rather than leaving the decision to a judge.

Preserving Relationships: Mediation helps preserve business relationships, which might be damaged by adversarial court action. We are seeking to prevent court proceedings at all cost, we understand these proceedings are costly, sometimes not cost efficient and extremely time consuming. You need your time to run your business, you can use our time to help you recover the monies you are owed. 

3. Mediation and Debt Collection:

Mediation is often used when informal debt collection methods have failed. While creditors may resort to court or legal action to recover the debt, mediation is a viable first step before taking formal steps like issuing a County Court Judgment (CCJ)which in some cases will result in Bailiffs being instructed. Again, time consuming and something that the Creditor will think long and hard about before going down this route.

At Commercial Debt Mediation, our mission is to help businesses recover unpaid debts while maintaining positive relationships with their customers. We strive to provide ethical and effective debt collection services that benefit both creditors and debtors.