Industry sector:

Classic car restorer: Rent

Enter in your cash flow forecast the amount of rent you will have to pay for your premises in the months that you will have to pay it.

If you have not yet decided on a particular premises you could contact a local estate agent who handles commercial property to get an idea of how much the rent is likely to be. You should have already given some consideration to the type and location of the business premises that you will require, so they will be able to give you some guidance as to how much you will have to pay.

Give careful thought to your premises requirements. You are likely to need enough space to park customers' cars - and possibly to display used car sales stock. You will need sufficient covered space for bodywork repairs and spraying, and possibly somewhere that can function as a customer reception area and office space. Your workshop space may need to be divided into different areas, including a specially-equipped spray booth. Units on industrial parks and estates are often suitable for this type of business.

Your solicitor will help you with the lease agreement but make sure that you are clear about:

  • whether the premises can be used for the purposes you have in mind
  • how frequently the rent will be reviewed
  • how long the lease runs for
  • what you and the landlord are each responsible for
  • the position as regards sub-letting