Nearly three quarters of small organisations face business disputes relating to late payments – with some even going to the wall.
Business disputes are costing small organisations in England and Wales at least 11.6 billion pounds per year. The Federation of Small businesses (FSB) has therefore called for Government action to make it less time consuming and costly to solve legal issues.
Inevitably, lengthy issues create consequences from cash-flow issues to bankruptcy. Which is why, the FSB are now calling for a new approach in order to prevent further disputes. As well as, making it faster fairer and cheaper if they do occur.
Recommendations from the FSB include that there should be an online hub providing guidance and support. This would help dissolve issues at an early stage. Along with the suggestion that the fees system should be changed to make it quicker, fairer and cheaper.
FSB North East chairman Ted Salmon, said: “Small firms are not legal experts, and struggle to navigate the alternative dispute resolution market. The English and Welsh courts are slower and more expensive than many comparable countries.”
Here at acorn.finance we are able to find you commercial finance if your business is facing consequences from business disputes. Whether its just to cover that upcoming payment, or if you need a larger sum to get your self back on your feet.
Contact us today for expert advice on how to minimise the consequences of disputes, on 01904 693700.
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