Behind on commercial rent
Commercial rent arrears escalate on a different track to most other business debts. A landlord has statutory remedies aimed directly at the premises, including Commercial Rent Arrears Recovery (CRAR), that don't require going to court first. Acting early, on both the landlord conversation and the funding side, matters more here than on an ordinary trade debt.
Why this moves differently to other arrears
CRAR lets a commercial landlord instruct an enforcement agent to take control of goods at the property to recover unpaid rent, a direct remedy most other creditors don't have. Landlords generally still prefer a workable payment plan to going through it, since enforcement costs them time and disruption too, but the fact the route exists changes how quickly a rent dispute can escalate compared with an ordinary supplier debt.
Two conversations, not one after the other
Talking to the landlord and looking at funding aren't sequential, they work better in parallel. A credible repayment plan is stronger with real funding behind it, and a landlord is generally more receptive to a tenant who's already moving on a solution than one who's gone quiet.
What tends to fit
There's no single right product here, it depends on what the business has to work with: a working-capital facility where the trading pattern supports one, asset refinance against unencumbered equipment or a vehicle, or a merchant cash advance where card takings are meaningful. The eligibility checker routes based on what's actually available, not a one-size answer.
FAQs
Does the landlord have to warn me before using CRAR?
There's a formal notice step before an enforcement agent can act, it isn't instant. That gap is exactly the window worth using, to open a payment-plan conversation and, if funding is part of the answer, to get that moving too, rather than waiting to see whether the landlord follows through.
Should I talk to the landlord before looking at finance?
Usually yes, in parallel rather than instead of. Landlords often prefer a workable payment plan to going through CRAR or forfeiture, both of which cost them time and disruption too. A funding conversation and a landlord conversation aren't mutually exclusive, and having a credible repayment plan strengthens both.
What kind of finance actually fits this situation?
Depends on what's available: a working-capital facility if the trading pattern supports one, asset refinance if there's unencumbered equipment or a vehicle in the business, or a merchant cash advance if card takings are meaningful. There isn't one right answer, it depends on what the business already has to work with.
Does rent arrears show up differently to lenders than other debts?
It's generally visible in the same way other arrears are, through bank statements and credit checks, but a landlord dispute doesn't carry the same automatic red flag as HMRC arrears or a winding-up petition. A clear explanation of the situation and a credible plan matters more than the arrears existing at all.
Want to talk it through? Send an enquiry and a business finance broker will contact you. Limited companies, LLPs and partnerships with four or more partners only.