Can disputes between a business and its lender be mediated?

Yes. Disputes between a borrower and a lender — over loan defaults, the interpretation of loan covenants, forbearance terms, or the enforcement of security interests — are well suited to mediation. These matters are often driven as much by the parties’ need to preserve an ongoing financial relationship as by the strict legal positions, and a negotiated resolution frequently serves both sides better than litigation or a forced liquidation. A mediator experienced in lending and commercial finance can help the parties evaluate the practical realities — the true value of the collateral, the cost and delay of enforcement, and the borrower’s prospects — and structure a resolution that reflects those realities.