A founder falling out. A client refusing to pay. A supplier dispute bleeding into your pipeline. These things happen, and when they do, the last thing you need is to spend the next 18 months in the legal system.

Too many SME owners reach for litigation by default. It's familiar. But it is expensive, slow, and almost always disproportionate to the actual problem.

 

What is it?

Mediation is a negotiation process, with legal representation on both sides, aimed at reaching a commercial resolution. It can be lawyer-to-lawyer, remote, face-to-face, or run by an appointed mediator. Nothing is binding unless you agree a settlement. And in our experience, most disputes resolve in a single day.

 

The commercial case

Cost first. Litigation escalates quickly once you're counting solicitor time, expert witnesses, procedural steps and the risk of paying the other side's costs if it goes against you. Mediation strips that back. Whatever you'd have spent on legal fees stays in the business.

Speed matters just as much. Courts are under serious pressure right now — delays are the norm, not the exception. Mediation runs at a pace that suits a business owner. For someone with a company to run, sorting a dispute and getting back to work is worth more than most people account for.

 

What the courtroom can't give you

Confidentiality. Nothing said in mediation becomes public record. Any settlement stays private. For an SME where reputation is currency, the ability to speak openly, without it becoming a public admission or courtroom exhibit is genuinely valuable.

And relationships. Litigation entrenches positions. Mediation opens dialogue. Because any outcome is agreed rather than imposed, both sides tend to come away feeling heard.

 

The flexibility argument

A court awards damages or grants an injunction. That's roughly it. Mediation can restructure a contract, agree a revised payment schedule, or set the terms for future collaboration. The solution is shaped around what the business actually needs, not what the legal process permits.

 

Where it doesn't work

Mediation needs good faith from both sides. It's not right where fraud is alleged, where serious misconduct is involved, or where a legal precedent genuinely needs setting. But even in disputes heading to court, early mediation almost always reduces the cost and time spent later.

 

A real example

Multi-country dispute. Product quality, third-party complaints, unpaid invoices. Lawyers instructed, court proceedings started, commercial relationship in pieces. 

We suggested informal mediation — private discussions, open conversation, cultural and emotional barriers addressed directly. Two weeks later, payments were made, the court case withdrawn, and the parties were trading again. 

Court would have taken 12 to 18 months and cost a multiple of what the dispute was worth.

 

The bottom line

If your business is facing a dispute whether it is a debt, a contractual disagreement, a falling out with a partner or supplier then mediation deserves serious consideration before a claim is filed.