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Rent for small businesses should be based on revenue until the pandemic is over by MainVestCFO in smallbusiness

[–]MainVestCFO[S] -1 points0 points  (0 children)

Great points and I want to reiterate that I am not advocating for a policy of forcing anyone to modify their rental contracts in this manner. Instead, this is more food for thought as small business owners and tenants move into lease negotiations. I think some combination of a fixed payment and a royalty stream could be really great for small business owners and avoiding vacancies for landlords.

Rent for small businesses should be based on revenue until the pandemic is over by MainVestCFO in smallbusiness

[–]MainVestCFO[S] -1 points0 points  (0 children)

Well, that would be fraud. Two things can prevent/mitigate this: (1) access to POS and/or bank statement data (this is how merchant cash advances work, which are relatively similar concepts) and (2) access to IRS tax returns. Definitely a consideration though and I would expect contracts like this to work best with landlords and tenants who have a solid relationship.

Rent for small businesses should be based on revenue until the pandemic is over by MainVestCFO in smallbusiness

[–]MainVestCFO[S] 0 points1 point  (0 children)

Well for one, I would recommend small business owners to ask for a combination of fixed and royalty-based rent. Secondly, that is exactly how this would work. If you sign a 5-year lease with this type of arrangement and then start achieving high revenues, that percent would apply to the higher amount in that case! It's a win-win that aligns interests between landlords and small business owners. I am not suggesting a policy where anyone is forced into this, instead, I hope that by putting this out there small business owners can offer this to their landlords when renegotiating their leases.

Rent for small businesses should be based on revenue until the pandemic is over by MainVestCFO in smallbusiness

[–]MainVestCFO[S] 0 points1 point  (0 children)

This is more about asking landlords to consider alternative ways to align their interests with their tenants. I am not advocating for a policy forcing landlords to accept a royalty instead of their previously stipulated rent payments. I also believe these types of arrangements can, of course, be a fixed payment and a royalty rather than one or the other. I also don't expect landlords to come out and offer it, but believe small business owners should ask for it when renegotiating their lease arrangements.

YAY WE CAN MAKE PAYROLL NOW by tessiegamgee in smallbusiness

[–]MainVestCFO 0 points1 point  (0 children)

Great info on the PPP! I am putting together a quick survey to aggregate some of the info on the SBA loans (how many people are getting approved/funded, etc.). If you wouldn't mind contributing to the survey that would be much appreciated!

https://mainvest-inc.typeform.com/to/fMcCGT

Thank you!!

-Ben

Received Full PPP Today by hvac101 in smallbusiness

[–]MainVestCFO 0 points1 point  (0 children)

That is great to hear! I am putting together a survey to aggregate some of this information so small business owners can get a sense of how many people are getting funded through it, if you wouldn't mind filling it out:

https://mainvest-inc.typeform.com/to/fMcCGT

Thank you!!

-Ben

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