Retailers are campaigning for the end of a centuries old practice that allows landlords to charge them for three months rent in advance.
Lobby groups for the retail sector are calling for landlords to accept just one month in advance.
The Association of Convenience Stores (ACS) and the British Retail Consortium (BRC) say that the old practice creates serious cashflow problems for small businesses.
It is estimated that the practice adds a further £145m to the costs of retailers and that this is driving some traders out of business.
The ACS says that landlords are losing out too, as they would benefit more from a thriving retail sector.
Politicians are becoming involved and a group of 51 MPs have signed an Early Day Motion urging landlords to pledge to accept rents monthly in advance.
James Lowman, director of Public Affairs at the ACS, said: “Having to pay rents quarterly in advance hinders the smallest businesses from starting up and adds an unnecessary burden to established businesses.
“We are glad to be supporting this campaign and working with colleagues in the industry to end this unnecessary practice.”
© Crimson Business Ltd 2006
