Some 61% of those firms could not pay their rent in November.
Further, the news is grimmer for minority-owned businesses. Some 61% of those firms could not pay their rent in November, representing the highest delinquency rate for in a minimum of six months.
The inability for entrepreneurs to pay rent raises worries about what else entrepreneurs cannot afford as well as boost fears about how long they will be able to remain in business.
Here are some actions proprietors can consider to help cover their rent based on research by BLACK ENTERPRISE:
Don’t be afraid to ask for help. Contact your landlord and explain your position. Ask them for more time to pay until you know for sure you will have the finances. Ask them if an installment payment plan and waived late fees are an option? Be sure to get whatever is agreed to in writing.
Try renegotiating your rent. This might be dauting to some small business owners when dealing with landlords. But you may have more bargaining power than you think. Be aware you’re not the only small business facing a rental payment crisis. Your landlord might be more open to rent renegotiations to retain you as a tenant. Do your homework before beginning the process to learn what the market rates are for commercial rent in your area. This could provide you with more leverage and support your case. Informing your landlord soon about financial aid headed your way could also be helpful.
Sublet unused space. Investigate the chance of renting any unused space to other businesses to help gain new revenue. Be sure to check with your landlord to see if the option is feasible and works with your rental agreement.
Cut expenses. Closely inventory all your expenses and see if any can be cut or reduced, including rent, supplies and software subscriptions for instance. No longer eat out or eliminate multiple streaming services. Be mindful that erasing nonessential expenses can help free up money to help pay rent.
Research funding options. Explore if state government along with small business offices in your city or county to see what advice, information, or links they can offer pertaining to rental aid in your circumstance. Telling your landlord that you are pursuing extra funding might work favorably in your case.
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Source: Black Enterprise