But small claims should still be part of the collection strategies of many businesses. Before you start a lawsuit in small claims court, investigate alternatives. If your case involves a written contract, check to see if the contract requires mediation or arbitration of disputes. If so, this may limit or cut off your right to go to any court, including small claims court. If you're in a dispute with a customer, or perhaps another business, and you still have hopes of preserving some aspect of the relationship, mediationeven if not provided for in a contractis often a better alternative than small claims court.
Any litigation tends to harden peoples' feelings.
It will be especially valuable in helping you prepare evidence and present your case to the judge.