The Shadow of CRAR
As we all know we live in an ever changing world. The impact of globalization means we can buy more and more from suppliers and retailers across the world. And closer to home, the need to go shopping or to source a local supplier is changing. We can buy local or further afield and we don’t even have to leave our home or workplace.
But as we can see, the way we purchase goods and services is having an impact on our high streets and in other types of commercial properties such as offices, warehouses and pubs.
Rents and business rates can take out a large chunk of cashflow of a business before the salaries and other overheads have been paid.
As an enforcement consultancy we see both sides. We see landlords needing to collect in commercial rent. And as High Court Enforcement Officers we see businesses struggling to keep up their monthly or quarterly rental obligations.
And the spectre of recovering commercial rent through enforcement action is increasing as these changing habits of commerce become business norms.
What does this mean for your business? As a landlord you may see tenants falling into arrears. You may not appreciate there is a fast track system for the collection of this commercial rent through the Commercial Rent Arrears Recovery or CRAR process which is a statutory procedure. It allows commercial rent to be collected by the serving of a simple notice, followed up by enforcement action using certificated enforcement agents.
Additional items such as service charges, and insurance can be recovered using a standard county court claim.
Shergroup offers services to recover both commercial rent, and incidental charges which are due under a commercial lease.
We encourage prompt action, as the longer arrears are left the harder it can become to collect the outstanding amounts. Using a combination of enforcement, legal and insolvency strategies we get our clients paid. The one stipulation is that the commercial rent must have been in arrears for at least 7 days before a landlord can instruct an enforcement agent.
We help with all the paperwork using the experience of our own Business Solution Advisors who will be happy to chat through your own particular situation. And the good news is there is no cost to instruct Shergroup to start the recovery of rent process. Other charges can be collected on a “no win, no fee” basis.
And for businesses that find they have landlords pursuing them for payment of commercial rent, we can offer a service to collect in their own outstanding invoices on the same “no win, no fee” basis. We can even offer invoice financing options for businesses that need additional funding almost immediately.
Ultimately the way we deliver our businesses is changing, We encourage businesses to look at the option of delivering their services without the need to take on expensive overheads which are not sustainable from bricks and mortar premises. Avoid the spectre of CRAR looming over your business by being creative, adventurous and innovative. Find ways to deliver your business in a different way and save the cost of commercial rent and all the associated overhead!
In the meantime we are here to help any business that finds the that the spectre of CRAR is overshadowing its success.