Do they just shut down a business or give them time to grab their stuff and run or do they try to find a common denominator. What happens when a business cannot pay to stay there?
2007-09-12 08:14:47 · 2 answers · asked by shallytally 4 in Business & Finance ➔ Renting & Real Estate
Business leases are much different than residential leases. If you don't pay the rent on a business lease the owner of the property can and will lock you out. Laws don't afford commercial leases the same leeway they do with residential leases. the law assumes that if you were smart enough to start and run a business then you were smart enough to negotiate a good lease.
That being said, your boss should read the lease he has for the place he rents. It should spell out in there what exactly will happen for non-payment. Forfeiture of equipment and lockout are both possibilities.
2007-09-12 08:20:07 · answer #1 · answered by Patrick 5 · 1⤊ 0⤋
Most of the time, when there isn't enough cash flow to pay the bills, someone at the company will go to the bank and establish a line of credit. The line of credit is usually guaranteed by either the accounts receivables or the inventory.
2007-09-12 15:25:56 · answer #2 · answered by Sophie B 7 · 0⤊ 0⤋