Tied Up: Unravelling the dispute resolution process for small firms

Commercial Disputes Costing Small Firms £11.6bn A Year, With Late Payments To Blame

Commercial Disputes Costing Small Firms £11.6bn A Year, With Late Payments To Blame

Commercial disputes are costing UK small businesses £11.6bn a year, and late payments are to blame – according to a report by the Federation of Small Businesses (FSB). Their report Tied Up: Unravelling the dispute resolution process for small firms has revealed that 70% of small businesses have had at least one commercial dispute in their lifetime, with the average amount under contention being £18,000. When asked about what was the reason for the dispute, 70% of survey respondents cited late or non-payments as the main factor. In terms of resolving the issue, 43% of firms engage in formal or informal negotiations with the offending party, 19% take the matter to the civil courts, while 8% seek an alternative resolution. Despite many firms taking the required action, 17% of respondents say ... »