How to Resolve Financial Disputes at Your Business
Financial Disputes
Business growth always comes with various challenges. One of the challenges you should expect is financial disputes.
The disputes, if not well managed, can retard the growth of a business or organization.
In the business arena, fraud, shareholder misunderstanding, money laundry, market abuse, breach of contract, bond issues, technology issues, debt settlement, ownership, security issues, and loan issues are key financial disputes.
As the leader, you should immediately solve the dispute before it affects the performance of the business.
Apply Mediation
Mediation is a process where a neutral party called a mediator is engaged during the resolution of disputes.
Before you engage a mediator, it is prudent to remember that the other party must first consent.
Besides, it is an informal process even though mediators are trained individuals.
The success rate of mediation is low because you may fail to reach an agreement.
However, in issues like ownership and shareholder misunderstanding, mediation can work.
Besides, it comes in handy when solving financial disputes in family businesses.
Try Arbitration
Before heading to court, you should try arbitration. For instance, it is wise to employ arbitration first if the financial disputes revolve around ownership or sharing of profits and dividends.
There are many arbitration organizations you can contact to help you with the arbitration process.
Consequently, the decision made by an arbitrator is legally binding. Hence, making it a good method.
However, remember that arbitration is a time-consuming process. Therefore, schedule your time well.
Engage a Third Party
Sometimes you may lack time to resolve a financial dispute actively. It is, therefore, wise to engage a third party for help.
In the case of defaulters, some companies, like Leib Solutions, know that you can hire a commercial debt collection agency.
The agencies work using various means to ensure your debtors clear their debts.
Employ Litigation
It is advisable to take legal action if the rest of the methods fail. Litigation is pretty expensive, but in the end, you will get a positive result.
In case you are dealing with uncooperative parties, litigation will be helpful.
Besides, the court will rely on evidence to solve the disputes. Consequently, you can appeal if the ruling is unfair.
Financial disputes in business are inevitable; therefore, it is prudent to mitigate them or solve them quickly as they happen.
Since there are various methods of solving disputes, weigh the advantages and disadvantages of each method before you settle on one.
Besides, remember to take the most cost-friendly method.
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Category: Business
