For many small businesses, the key to getting through the Covid-19 pandemic may be negotiating a sympathetic arrangement with the landlord or key suppliers. Are they prepared to offer rent or payment holidays during the height of the crisis to help you with short-term cash-flow pressures?
In practice, it will be in the interests of many landlords and suppliers to help rather than lose tenants and customers altogether. But to negotiate the right deal, you need to approach the situation carefully and sensitively.
Start with a clear plan. What do you need from your landlord and for how long do you need this support? Strike a balance between asking for all the help you will realistically need – going back later to ask for further forbearance may get a negative reaction – and pushing too hard. Landlords and suppliers will have their own pressures.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Talk to your landlord and suppliers as soon as you can, ideally before you miss any payments. The later you leave it, the weaker your negotiating position will be. Set out the benefits of offering your business help: where possible, remind landlords and suppliers of your good payment history and strong credit score and provide detail of your longer-term prospects. Make the point that others in your sector – potentially alternative tenants and customers – will be in the same boat as you. Where you can pay at least something, offer to do so. This will often be better received than a request for a complete payments holiday. It also means the landlord or supplier will be better off with you than with no customer or tenant at all.
-
Christmas at Chatsworth: review of The Cavendish Hotel at BaslowMoneyWeek Travel Matthew Partridge gets into the festive spirit at The Cavendish Hotel at Baslow and the Christmas market at Chatsworth
-
Tycoon Truong My Lan on death row over world’s biggest bank fraudProperty tycoon Truong My Lan has been found guilty of a corruption scandal that dwarfs Malaysia’s 1MDB fraud and Sam Bankman-Fried’s crypto scam
-
UK wages grow at a record paceThe latest UK wages data will add pressure on the BoE to push interest rates even higher.
-
Trapped in a time of zombie governmentIt’s not just companies that are eking out an existence, says Max King. The state is in the twilight zone too.
-
America is in deep denial over debtThe downgrade in America’s credit rating was much criticised by the US government, says Alex Rankine. But was it a long time coming?
-
UK economy avoids stagnation with surprise growthGross domestic product increased by 0.2% in the second quarter and by 0.5% in June
-
Bank of England raises interest rates to 5.25%The Bank has hiked rates from 5% to 5.25%, marking the 14th increase in a row. We explain what it means for savers and homeowners - and whether more rate rises are on the horizon
-
UK wage growth hits a record highStubborn inflation fuels wage growth, hitting a 20-year record high. But unemployment jumps
-
UK inflation remains at 8.7% ‒ what it means for your moneyInflation was unmoved at 8.7% in the 12 months to May. What does this ‘sticky’ rate of inflation mean for your money?
-
VICE bankruptcy: how did it happen?Was the VICE bankruptcy inevitable? We look into how the once multibillion-dollar came crashing down.
