The British Retail Consortium (BRC) has produced template letters that shop owners can approach landlords with regarding quarterly rents.
Additionally, a draft deed has been produced by the BRC after it worked with legal advisors.
The draft deed provides for a legally binding agreement to changes in payment terms; from quarterly rents in advance, to monthly rents in advance.
According to the BRC, landlords must make payment terms for retailers, especially smaller firms, more flexible during a period of economic instability.
Earlier this year, the organisation said quarterly payment terms are severely “outdated”.
Chief executive Stephen Robertson said: “The BRC has made significant progress in establishing monthly rents as the norm but today’s tough trading conditions mean the impact of paying three months in advance is that much greater.
“Seeing retailers driven to the wall is in no-one’s interest. By agreeing to a fairer rents regime, landlords will be contributing to the retail prosperity on which they themselves depend.”
Part of the letter reads: “One very helpful change which, you could initiate would be to move our payment terms in our existing leases from quarterly in advance to monthly payments in advance.
“I believe this move is in line with modern business practices, having been accepted as best practice on the majority of new leases and would make cash flow management significantly easier.”
The next quarterly payment day is 25 December. Last month, the Association of Convenience Stores urged Chancellor Darling to postpone business rate rises planned for 2009.
