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Before Litigation: Why Businesses Should Give Online Dispute Resolution a Serious Chance

By Ben Abraham, Senior Litigation Coordinator, Fair Capital

Unpaid invoices can quickly turn from a simple accounting issue into a costly legal dispute. As Senior Litigation Coordinator at Fair Capital, one of the largest collection agencies in the United States, I see this reality every day. When amicable debt collection efforts are exhausted, my team works with our nationwide network of affiliate attorneys to help arrange and prepare lawsuits on behalf of creditors seeking to recover unpaid commercial debts.
This typically becomes necessary when a debtor ignores repeated collection efforts, refuses to engage in good faith, raises frivolous disputes, or simply leaves the creditor with no meaningful alternative. In those situations, litigation may be the only practical path forward.
But anyone who works in this field understands that filing a lawsuit is not a small step. It involves time, cost, documentation, jurisdictional considerations, attorney coordination, pleadings, summonses, complaints, service of process, court timelines, and ongoing case management. Even when a creditor has a strong claim, and even when the underlying contract allows for recovery of legal fees or collection costs, there is no guarantee that every expense will be fully recovered. The outcome can depend on the jurisdiction, the contract language, the facts of the case, the debtor’s financial condition, and many other practical realities.
That is why I believe strongly in giving parties every reasonable opportunity to resolve a dispute before it becomes a lawsuit.

Litigation Has Its Place — But Settlement Should Always Be Explored
There are cases where litigation is unavoidable. If a debtor refuses to communicate, delays without explanation, or takes a position that is clearly inconsistent with the documents, a creditor cannot be expected to wait forever. Businesses rely on cash flow. Unpaid invoices are not just numbers on a spreadsheet; they affect payroll, operations, growth, and the financial health of the company.
At the same time, going to court is often a last resort, not a victory in itself. A lawsuit can increase pressure, but it can also increase costs, consume time, and harden both sides’ positions. In many cases, the best result is not necessarily the most aggressive result. The best result is the one that gets the creditor paid as efficiently and reasonably as possible.
That is why platforms like Conflict.Law are so important.

A Better Doorway for Business Disputes
Conflict.Law provides a valuable opportunity for parties to engage in a structured online process and try to resolve disputes before they escalate further. In the debt recovery world, that kind of platform can be extremely helpful.
Many disputes do not begin as lawsuits. They begin as unanswered emails, unpaid invoices, missed promises, misunderstood obligations, or disagreements over the scope of work, delivery, performance, timing, or payment terms. If both sides are given a clear, organized, and professional way to communicate, there is often a meaningful chance to reach an agreement.
That is the opportunity that online dispute resolution can provide.
Instead of forcing every disagreement into the litigation track, businesses can use a platform like Conflict.Law to create a space where both sides can present their position, review the issue, exchange proposals, and work toward a practical resolution.
For creditors, this can be especially valuable. It shows that the creditor made a good-faith effort to resolve the matter before escalating. It may help avoid unnecessary legal costs. It may preserve a business relationship. Most importantly, it may result in payment without having to wait months for litigation to move forward.

Why Creditors Should Take This Seriously
From my experience, the biggest challenge in many debt recovery matters is not always the legal claim itself. Often, the documentation is clear. The invoice is due. The agreement exists. The product or service was provided. The balance is outstanding.
The real challenge is getting the debtor to engage.
Some debtors ignore the matter until legal action is imminent. Some claim there is a dispute but never provide supporting documentation. Some make vague promises without proposing a realistic payment plan. Others simply hope the creditor will give up.
A structured online dispute resolution process can help cut through that noise. It creates a defined place for the parties to communicate. It encourages the debtor to respond. It gives the creditor a chance to present the issue clearly. And it may help both sides move from emotion and delay toward a specific resolution.
That is extremely valuable.

Practical Tips for Creditors Using an Online Resolution Platform
For creditors considering a platform like Conflict.Law, here are a few practical tips:

1. Start with the documents
Before opening a dispute, gather the core documents: the contract, invoices, statement of account, proof of delivery, emails, purchase orders, signed proposals, payment history, and any prior promises to pay. A strong resolution effort begins with clear documentation.

2. Keep the message professional
Do not use the platform to vent frustration. Keep the tone direct, factual, and professional. Explain the balance, the basis for the claim, and what you are requesting. The goal is to resolve the matter, not to create unnecessary hostility.

3. Be clear about the amount due
State the exact balance, including any applicable interest, fees, or costs if they are part of the claim. If you are willing to consider a reduced settlement or payment plan, make that clear as well.

4. Give the debtor a realistic path to resolve the matter
Sometimes the fastest way to recover money is to offer a structured option: a lump-sum settlement, a short payment plan, or a deadline-based proposal. A debtor who cannot pay everything immediately may still be able to make a reasonable proposal if given a clear framework.

5. Set deadlines
Resolution efforts should not be open-ended. Creditors should give reasonable deadlines for response, documentation, settlement acceptance, and payment. Without deadlines, disputes can drag on indefinitely.

6. Document the process
If the matter does not resolve and later proceeds to litigation, it is helpful to have a clear record showing that the creditor attempted to resolve the dispute amicably before filing suit.

7. Know when to escalate
Online resolution is a valuable tool, but it should not become a way for debtors to delay indefinitely. If the debtor refuses to participate, acts in bad faith, or fails to honor an agreement, the creditor may need to proceed with formal collection or litigation through counsel.

The Real Goal: Resolution

At Fair Capital, our goal is always to maximize recovery for our clients. When litigation is necessary, we help coordinate the process through our network of affiliate attorneys who prepare and file the appropriate legal actions directly on behalf of the creditor. But litigation is not always the best first move, and it is certainly not the most efficient solution in every case.
Whenever parties can resolve a dispute amicably, professionally, and without court intervention, that is usually a better outcome for everyone involved.
Creditors get paid faster. Debtors avoid unnecessary legal escalation. Business relationships may be preserved. Costs may be reduced. And both sides maintain more control over the outcome.
That is why I am genuinely excited to see Conflict.Law creating a new possibility for structured, online dispute resolution. In today’s business environment, creditors should not ignore tools that can help them engage debtors, resolve conflicts, and reach agreements before matters become lawsuits.
Court should remain available when needed. But when there is a practical opportunity to resolve a matter before litigation, businesses should take advantage of it.
In many cases, the smartest legal strategy is not rushing to court. It is creating one last serious opportunity for resolution — and making that opportunity clear, structured, and easy to engage with.