Commercial Rent Arrears: Your best options for action explained
In these unprecedented and challenging times the health and wellbeing of us all is rightly everyone's key concern.
However, set against this is the inevitable need to maintain a level of commercial focus and plot a way through the various pieces of guidance that are currently being issued and, in some cases, creating a level of confusion, in order to best protect the interests of your business, and ensuring it is in the best possible health once we are through the crisis. At Debt Squared we are aiming to provide a series of communications throughout the current crisis to provide what we hope will be helpful advice in aiding you to take the right decisions for yourselves and your clients.
CRAR: The most important considerations today!
- A number of our clients have asked the question: "Are we still able to enforce against non-payment of due quarterly rent?"
The answer to this is yes you are.
- Notwithstanding the above, in this challenging environment you may wish to take a view on how strongly you apply enforcement, and take account of any particular negative cashflow impacts that your tenants may be suffering. The option of obtaining a CRAR Enforcement Notice still remains open to you, and ensures that you maintain a level of control over the bad debt situation. Whether you choose immediate enforcement or you wish to provide tenants with a period of more relaxed grace whilst combatting any negative impacts from the spread of COVID-19 and the government restrictions, once you have the Enforcement Notice in place you have a 12 month period from date of issue in which you can apply the Warrant of Control to secure payment. This effectively puts you in control and able to take whatever approach you feel is most appropriate with your tenants and hence best protecting landlord interests.
- Though quite clearly many companies are going to face significant financial difficulties in the short term, not all will suffer to such a degree that their ability to pay rent is impacted. Obviously, in order to ensure that you are able to take the right commercial decisions through this period, whilst maintaining a high level of understanding and empathy, you need to be able to distinguish between those tenants who are suffering badly and those who are managing to trade at or near normal levels. The Debt Squared FREE Business Credit Risk Rating Report enables you to get an up to date picture of the financial status of your clients, and better inform your decision-making processes through this critical period.
We are here to help
By now we are all aware that we are in unprecedented territory and being challenged to ensure we display the best traits of humanity whilst fulfilling our ongoing commercial responsibilities.
Our experienced and professional team of advisors are on hand to help you make the right decisions and apply the most appropriate actions to each given situation.
We are here to help
Our team of experienced and qualified advisors are still in place to provide advice, support and provide recovery action where require.
At this very sensitive and worrying time for all we are keen to ensure that you have all the facts and support you need to make the very best decision for your business and your clients.