Quick answer
If your landlord has issued a breach or default notice for unpaid rent, read the deadline in the notice, contact the landlord or agent the same day with a specific offer, and get legal advice on your lease. Clearing the arrears within the notice period usually protects the lease. A short-term business loan can fund it: unsecured for smaller amounts, or property-secured with $20k to $250k possible the same day.
Key points
- Commercial leases set out notice periods and remedies; the notice tells you how long you have.
- Losing premises usually costs far more than the arrears — fit-out, goodwill, relocation.
- Landlords generally prefer a paying tenant to an empty shop; a firm offer often works.
- Funding can be paid directly to the landlord or agent.
- Check
- Deadline in the notice + your lease
- Call
- Landlord or agent, same day
- Route
- Unsecured or property-secured loan
Why is a rent notice so serious?
For a cafe, salon, gym, retailer or workshop, the premises is more than an address. It’s the fit-out you paid for, the foot traffic you rely on, the licences tied to the site and the goodwill your customers associate with that location. Losing it can cost many times the rent you owe.
When rent falls behind — often after a slow season, a big repair or a customer who paid late — landlords usually follow a process. A reminder, then a formal notice of breach or default that sets a deadline to pay. If the deadline passes, the lease may allow the landlord to terminate and re-enter. In some cases the landlord may also serve a statutory demand on the tenant company.
What should I do on the day the notice arrives?
- Find the deadline in the notice and check the matching clause in your lease.
- Confirm the amount — rent, outgoings, interest and any costs claimed. Ask for a statement if it isn’t clear.
- Call the landlord or agent the same day. Don’t let the notice sit unanswered.
- Make a specific offer. For example: half the arrears this week, the rest within 30 days, and rent on time from now.
- Get legal advice if the amount is disputed or you’re unsure of your rights under state leasing laws.
- Arrange funding for whatever part of the offer you can’t cover from cash.
How much should I borrow?
Usually the arrears plus enough to keep next month’s rent safe. If the arrears came from a one-off event, that’s the whole job. If rent has been tight for months, look at the underlying trading before borrowing — a loan clears the arrears but won’t fix a lease that’s too expensive for the business.
| Situation | Route | What’s possible |
|---|---|---|
| Smaller arrears, trading 12+ months | Unsecured emergency loan | Same-day funding possible for smaller amounts |
| Larger arrears, owner has property | Urgent caveat loan | $20k to $250k same day possible |
| Arrears plus other debts | Property-secured second mortgage | Consolidate in one loan |
| Recurring seasonal shortfall | Line of credit | Draw in the quiet months |
Illustrative example: a gym after a slow winter
Illustrative only. A gym in suburban Perth falls three months behind on rent and outgoings — about $54,000 — after membership dips over winter and a major equipment repair. The landlord’s agent issues a notice giving 14 days to pay.
The owner calls the agent that afternoon and offers $30,000 within the week and the balance within 30 days. The agent agrees in writing. The owner has two years of bank statements showing steady membership income. An unsecured loan of $60,000 covers the full arrears and the next month’s rent, paid directly to the agent. The lease continues, and summer memberships repay the loan.
What should I say to my landlord?
Be brief, honest and specific:
- What happened, in a sentence.
- What you can pay now and when the rest will follow.
- That you’re arranging funding to make it happen.
- That rent will be paid on time going forward.
Landlords and agents hear vague promises all the time. A clear plan backed by real funding stands out. Our guide on calling creditors to buy time has a simple structure for the call.
What lenders need
- The landlord’s notice and the lease.
- A rent ledger or statement of arrears.
- Recent business bank statements.
- Photo ID and ABN/ACN.
- Property details if you’re offering security.
Is the lease still right for the business?
Once the immediate risk is handled, take an honest look. If the arrears came from a one-off event, the lease is probably fine. If rent has been a struggle for most of the year, clearing the arrears with a loan only buys time. Options worth exploring with your adviser include renegotiating rent at the next review, subletting part of the space, assigning the lease, or planning a move at the end of the term. Clear the arrears first — you’ll negotiate any of those from a much stronger position as a tenant in good standing.
Protect your premises
The notice period is your window. Start a 60-second enquiry as soon as you’ve spoken to the landlord.
There’s no credit check when you first enquire. Your details stay with one specialist rather than being shopped around a list of lenders, and a real person calls you back. Please be accurate about the arrears, the deadline and your property position, so the first option we bring you is the one that saves the lease. Check your options now.
Frequently asked questions
Can my landlord lock me out for unpaid rent?
It depends on your lease and the retail or commercial leasing laws in your state. Many leases require a written notice and a period to fix the breach before the landlord can terminate. Get legal advice quickly.
Will the landlord accept a payment plan?
Many will, especially if you've been a reliable tenant. Offer a specific amount now and a firm schedule for the rest, and get it in writing.
Can I borrow to pay rent arrears?
Yes. Business loans are commonly used to clear rent arrears and protect premises. The lender will want to see the notice and understand how trading will cover rent going forward.
Is there free help for lease disputes?
Each state has a small business commissioner or similar body that helps with retail and commercial lease disputes, and the Australian Small Business and Family Enterprise Ombudsman can point you in the right direction.