Not everyone has the knack of making payments on time. This is more so rent payment against rental stores and office space that you may have leased. Making sure that you pay rent on time for your office and store space is vital as it affects the continuity of your business. Being up to date with your payments ensures that you do not have deal with notices to vacate or auctioning of your property to recover payments.
When running a business, rent should be a priority expense even before any other. This is because it is from this space that you get money to cater for the other expenses. If you want to have a better time paying rent, ensure that you get a space that you can afford. If you cannot afford to rent a space at a prime location, then please do not.
Start with a space that you know you can meet the expenses especially if you are starting out. You can then build on your business until you know your business has reached a level that can afford the prime location. That, here is how you can ensure you pay your rent on time:
Make it a priority payment
The mistake most people make is to leave out paying their rent until the last minute. This is a mistake as it removes the importance of the rental space to your business. As an important asset, ensure that this is the first thing you pay for when making your checks. The record of your rent payment reflects in your rental history, which might lock you out on other important opportunities such as when you want a mortgage loan for your business. Finance organizations check rental history
before they give out mortgages and a poor record could see you get high interest rates.
Make standing order for your rent payment
To avoid situations where you put off rent payment, you can place standing orders with your bank that will see you pay the rent automatically. This helps you not forget to make the payments or not prioritize it which can be detrimental to your business. The only thing you need to do is to ensure you have enough funds in your account to make the payments every month. This way you avoid problems with your bank or incur heavy fines.
Set aside money on a weekly basis till you reach your target rent
The business environment is at best unpredictable. Ensure that you have a line of revenue that will raise the money you need to pay your rent. The line of revenue can cover products or services that are in demand on almost a daily basis. You can also set aside on a weekly basis all the money that you need to make your rent as this way you have an assurance that at the end of the month you have raised enough to pay off your rent.
Nicholas Kim is a renowned business advisor. He has been in the business close to a decade now. He insists of the paramount importance of why one should check rental history for their client before applying for mortgages. Visit his blog and learn more about him.