Mediation affords banks an opportunity to deal with borrowers in financial difficulties outside the usual enforcement remedies available which will include debt proceedings, securing judgment, appointment of receivers and possibly bankruptcy proceedings.

Mediation, to be successful, requires a willingness of the parties i.e. the borrower and the bank, to engage in the process and ultimately a willingness on both sides to compromise their position.

Mediation is cost effective for both the borrower and the bank.

If an outcome/settlement is not achieved then the parties’ legal rights as against each other are preserved. Thus the exploring of mediation as a possible means of achieving a result does not compromise either party’s position unless a binding agreement is committed to by both sides.

Mediation should be explored at the earliest possible juncture. There is nothing to lose and a lot to gain.