Landlord’s Don’t Offer Company Formation a Merry Christmas

One of the main objectives for most recently formed companies through 2008 was to reduce overheads by any means possible.

For many, that meant making redundancies, switching suppliers and attempting to negotiate cheaper rents on their premises. However, with the next quarters rent now due, many landlords are refusing to lower rents or negotiate more flexible terms.

In a standard rental agreement, most landlords ask for three months rent in advance and quarterly rental payments thereafter. However, with maintaining a healthy cash flow being one the most important aspects of surviving the recession, many business owners have tried to switch to monthly rental payments, to no avail.

According to the findings of the report, just over 10 percent of businesses have been able to switch to monthly rental agreements, while the remainder has had to deal with the massive overhead of paying quarterly rates or simply shut up shop.