Whether or not we are in a recession is a debate best left to economists. But most of us feel like there's a slowdown of sorts. What is a business to do when the economy is down, financial pressures are placed on officers and directors, and folks owe money.
Litigate. Or mediate earlier.
Joanne Birtwistle writes in Crain's Manchester Business that companies are doing more these days to chase debts. In addition to litigation increasing, mediation is proving to be popular and companies are using mediation earlier than they normally would.
The reasons for "early mediation" are (1) creditors want to preserve cash; (2) risk reduction; (3) improve cash flow earlier in the process; and (4) the flexibility in reaching decisions, compared to the win/lose outcome in courts.
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