As the world navigates through the uncertainty of the coronavirus (COVID-19) outbreak, there is disruption across the economic spectrum that could be felt for months or years to come.
Even with this uncertainty, there are actions that borrowers and tenants can take now to mitigate risk in their businesses.
- Do not stick your head in the sand. Call your lender or landlord today and openly explain your situation. Your lender or landlord already knows what is going on in the world, and there is no benefit in hiding how it is affecting you. In fact, waiting until you are in dire straits is the worst thing you could do.
- Keep informed of any rules and regulations. Nothing is in place yet, but based on what happened in 2008, we suspect there will be rules and regulations instituted by the government to assist companies with temporary cash flow problems. LP will keep you updated as we learn what is being implemented to require lenders to work with customers. Similarly, we expect landlords to work with their tenants.
- Consider your options. If you feel you are already in dire straits, LP can help you identify your options. Bankruptcy can help stave things off. Hopefully, what we are experiencing is only temporary and bankruptcy can give you the time you need to right the ship once things return to normal.
For more resources and LP's response to COVID-19, visit this webpage.