Protecting your business: key legal considerations during difficult economic times

Companies across the UK have seen rising costs and economic volatility throughout the first half of 2025.

From contractual disputes to issues relating to commercial property leases and debt recovery, WHN Solicitors’ team of legal experts can support with a wide range of business issues which often come to the fore when the economy is sluggish.

Over recent months, our ‘protecting your business’ campaign has been shining a light on some of these issues and offering advice to business leaders. The below article shares key advice from senior members of our business law team on a variety of these issues.

The rise in commercial contractual disputes and how to avoid them.

Economic instability creates uncertainty and challenges for businesses. Those in long-term contracts drafted during more stable economic periods may be struggling with terms and conditions that no longer reflect the current commercial climate.

According to a recent report prepared by Gallagher, a world-leading insurance brokerage and consulting firm, there has been a significant increase in the number of UK businesses hit by litigation since 2019. Contractual disputes were among the biggest concerns, experienced by 35 per cent of the 750 senior leaders surveyed.

With increased costs and the current economic slowdown putting further strain on businesses throughout early 2025, this trend shows little sign of slowing down in the short-term.

Sara Beaumont, a director based at WHN’s Bury office and a commercial dispute resolution specialist, explains the reasons behind the increase and outlines how these disputes can be avoided or alleviated.

Read the full article here.

A guide for commercial landlords when a tenant is in financial distress

Several recent well-established reports on the financial health of UK businesses, including corporate recovery and financial advisory firm Begbies Traynor’s recent Red Flag Reports, have shown significant increases in UK firms in ‘critical financial distress’.

This rise in companies at risk of insolvency impacts the UK commercial property sector, with more than half of the UK’s businesses renting their trading premises. The key implications for landlords include rent arrears, dilapidations, insolvency situations and difficulties re-letting, which can become more difficult in a volatile economy.

WHN director Daniel Long, who heads up the firm’s commercial property dispute resolution team, highlights the implications and offers advice for commercial landlords.

Read the full article here.

Reviewing your tenancy agreement during financial difficulties

For many businesses, commercial premises represent a significant monthly fixed cost. While all commercial tenants are bound by the terms of their lease, positive conversations with a landlord can give greater certainty or flexibility for tenants or even allow them to re-negotiate their lease at a more-cost effective rate.

In this article, Daniel Long outlines the options for tenants in different situations and also advises on how to minimise costs when leaving a property.

Read the full article here.

Recovering commercial debt in an economic downturn

In the current challenging economic climate, maintaining healthy cash flow has become more critical than ever for businesses. Late payments and outstanding debts not only strain operations but also threaten a business’s long-term sustainability.

Whether you are small-to-medium enterprise (SME) or a growing company, implementing effective debt recovery strategies is essential to protect your bottom line, particularly during difficult economic periods.

Sara Beaumont, a commercial dispute resolution specialist and director at WHN, explores practical approaches to help businesses navigate debt recovery while preserving customer relationships. This includes utilising technologies, offering flexible payment plans and taking legal advice where needed.

She also highlights ways to reduce the risk of late and non-payments, including implementing strict credit policies, invoicing accurately and offering incentives for early payment.

Read the full article here.

If you would like support regarding any of these above matters, please go to our website contact us page and call your nearest WHN office, or send your query to WHN by completing the contact form and our specialist legal team will be in touch.