Small Business Debt Mediation: Who Qualifies and What You Get
Learn how small businesses in Australia can use mediation to resolve unpaid invoices and settle payment disputes.
This scheme provides a way for small businesses to resolve disputes regarding unpaid invoices through a guided negotiation process.
Who it's for
This service is specifically designed for small businesses that are currently navigating payment disputes. If you are running a small business and are struggling to collect money owed to you, or if you are facing a dispute regarding an invoice, this mediation service is intended to help you manage that tension.
What you get
You can access low-cost mediation services to help settle unpaid invoices. Mediation is a process where a neutral third party helps both sides talk through the issue to find a solution. This provides a way to attempt debt recovery through discussion and agreement rather than immediately turning to more expensive or formal legal options.
What it costs you
There is a small administrative fee required to cover the costs of the mediation process. You should check the current requirements for this fee through the official channels to understand the exact amount you will need to pay to initiate the service.
The catch to know
The most important thing to understand is that mediation is a voluntary process. Unlike some legal mandates, both parties involved in the debt dispute must agree to participate in the mediation for the process to move forward. If the other party refuses to join, you cannot force them into this specific mediation scheme.
How to apply
- Gather all relevant documentation regarding your unpaid invoices and the details of your payment dispute.
- Contact the Australian Small Business and Family Enterprise Ombudsman to discuss the nature of your dispute.
- Propose the mediation process to the other party involved to see if they are willing to participate.
- If both parties agree, follow the formal steps provided by the service to begin the mediation process.