Times are tough. The June quarters day rental payment has just passed and you may find yourself in a position where you have been unable pay your rent. Please do not wait for your Landlord to take action. Instead take positive action and try and open up negotiations with your Landlord for a rent reduction and/or restructuring of the rental payments.
In our experience your Landlord may well be open to such negotiations and prepared to be flexible. Times are tough for Landlords too. Your Landlord may already have a number of empty properties in its portfolio. Furthermore, empty properties do not only mean that the Landlord will receive no rental payments, but that in addition it also faces a liability to pay business rates, once its property has been empty for more than 3 months.
A word of warning ...
You are deemed insolvent if you are unable to pay your debts as they fall due and vulnerable to being wound up by the Court, should a creditor present a winding-up petition against you in respect of unpaid invoices. As a director of a limited company you are also at risk of trading your company wrongfully and as such incur a personal liability for your company’s debts.
In the absence of being able to re-negotiate your rent, or should such negotiations fail to resolve your cash flow problems, it is essential that you take prompt and appropriate advice in relation your business’ insolvency. The earlier you take advice, the more chance there is that your cash flow problems can be successfully resolved and your business saved.
For further advice or assistance, please contact Petra van Dijk, of our insolvency team, at Spratt Endicott Solicitors on 01295 204159.