The COVID-19 situation might affect your ability to pay rent, bank loans, insurance premiums, utilities, or vendors on time. If you are struggling, get in touch with the company you owe and explain your situation.
Proactive, early communication is key to negotiating a reduction or payment plan for your rent loans or other expenses.
Remember, your vendor is under no obligation to work with you on rent arrears/loan payments/other financial obligations. But in the current situation they may help you if they are able.
Communicating with vendors: best practices
Use a polite, professional tone and keep your communication simple and concise.
Stay up-to-date about the Government’s support, and provide any required documentation as an attachment to your letter. Make sure you conceal any personal information the recipient does not need to see.
Keep a copy of all your letters.
We have created sample letters to help you communicate with landlords, lenders, banks, insurance companies, vendors, suppliers, and others.
They won’t be suitable for every situation, so please seek legal advice if you need to.
Sample Letter to Bank, Financial Institution, or Insurance Company to request payment relief:
To <<name/whom it may concern>>,
I’m writing to make a request regarding my <<bank loan>>, account ending in xxxx. I am temporarily unable to make my <<loan/interest>> payment due to the mandatory shutdown of non-essential businesses related to the COVID-19. Even though I cannot <<open my business/ generate income>>, I am doing what I can to protect my business. I have contacted the relevant agencies for government assistance and grants.
I am asking for <<a different payment plan/your help in my recovery>>. I am committed to making lower payments and maintaining my agreement with you.
Please let me know if there is a fee for arranging these term changes.
Current loan: Name of account/loan holder: Branch address <<Write the bank address>> Account number and sort code: <<Write the account codes>>
Please contact me if you require any further information.
My telephone number is xxx.
Sample Letter to Landlord to request rent relief or payment plan:
Dear Mr. or Ms. ______________, landlord at <<address here>>:
I apologise for being behind in paying rent. Before the enforced COVID-19 business closure, our business had <<always paid rent on time>>.
The mandatory shutdown of all non-essential businesses has led to temporary financial hardship for my business. <<Being away from work/Not being able to open my shop>> has significantly reduced my income, making it difficult for me to pay rent at this time.
I would like to resolve the situation. Please can we discuss options to agree a future instalment payment plan? Or, perhaps you would you consider allowing me to skip a month entirely during this challenging business situation? I am proactively seeking a solution that we can both agree on.
Thank you in advance for understanding my situation. I look forward to hearing from you and can be reached directly at << phone number here>>.
Sample Letter to Suppliers/Vendors/Utility Companies:
My business has stopped operating due to the mandatory COVID-19 shutdown and I am unable to continue receiving services/goods from your company __________________.
It is with sadness that I must <<stop your services/postpone delivery of goods/ supplies/request immediate shut down of utilities>>. Please stop providing your <<goods/supplies/services>> as my company is now closed. I do not know when we will reopen, so I cannot continue to <<accrue debt/store goods/ shipment/ delivery/services>>.
Please let me know if I have outstanding unpaid invoices. I am committed to <<keeping my account current/not falling behind/making lower payments>> and maintaining my obligations with you. If there are outstanding invoices to my name or business, I am proactively seeking a solution by <<requesting a payment plan/scheduling future repayment arrangements /discussing options with you over the phone>>.
I appreciate your <<services/goods/supplies>> and I wish to <<continue working with your company when I reopen my business>>. I look forward to hearing from you and can be reached directly at << phone number here>>.
Your Name, Business Name/Address/Account Number
Support for you and your business during COVID-19
QuickBooks is committed to helping you, your business and your team through this difficult time. You’ll find practical tips and resources on our dedicated web page which is updated regularly.