Renegotiating with Vendors, Landlords, and Lenders During a Recession

By Jenny Holly Hansen | WBN News | May 3, 2025

One of the hardest — and most necessary — lessons I’ve learned during economic downturns is this: in a recession, almost everything is negotiable. Vendors, landlords, lenders — they’re all feeling the pressure too. The key is approaching renegotiations early, professionally, and with a mindset focused on partnership, not confrontation.

Done right, renegotiating isn’t just about survival. It’s about preserving relationships, protecting your cash flow, and setting your business up to emerge stronger on the other side.

Why Timing Matters

If I’ve learned anything, it’s that waiting too long to open renegotiations limits your options. The earlier I start the conversation, the more likely I am to find a solution that works for both sides.

Waiting until cash is dangerously low or invoices are overdue can make negotiations feel desperate — and that's when leverage disappears. Starting early allows for calm, creative discussions, not last-minute scrambling.

Renegotiating with Vendors

Vendors are often more flexible than we realize — especially in a recession, when keeping a good customer is better than losing one.

When renegotiating with vendors, I focus on:

• Requesting temporary discounts or extended payment terms
  Many vendors would rather stretch payment deadlines or offer small discounts than lose a loyal account.
• Bundling or consolidating services
  If I can offer a larger contract or commit to a longer term in exchange for better pricing, it can be a win-win.
• Being transparent but professional
  I don’t lead with panic. I frame it as: “Here’s where we are. Here’s what we’d like to propose. How can we work together?”
• Exploring alternative payment structures
  Sometimes partial payments, payment plans, or bartering services can keep things moving without putting unnecessary strain on either party.

Renegotiating with Landlords

Real estate costs are often one of the biggest fixed expenses — and landlords know that high vacancy rates during a recession are a real threat.

When working with landlords, I approach renegotiations carefully:

• Ask for rent deferrals or temporary reductions
  Many landlords prefer to keep a tenant at slightly reduced rent than risk an empty space.
• Propose lease amendments
  Offering to extend the lease term in exchange for short-term relief can be attractive to both sides.
• Negotiate operating expenses separately
  In some cases, non-rent charges (like maintenance or taxes) can be negotiated even if the base rent is less flexible.
• Stay solutions-focused
  My approach is never about demanding help. It’s about proposing realistic adjustments that protect both my business and their long-term income.

Renegotiating with Lenders

Lenders are in the business of managing risk. During a recession, they want borrowers to succeed — because foreclosures and defaults cost them far more.

When renegotiating with lenders, I focus on:

• Requesting interest-only payments for a period
  Temporarily reducing principal payments can free up critical cash flow.
• Refinancing existing loans
  If rates have dropped or if extending the term makes monthly payments more manageable, refinancing can be a lifeline.
• Exploring government-backed relief programs
  During major downturns, there are often support programs that lenders can facilitate, but I need to ask.
• Providing a clear plan
  Lenders want reassurance that I have a path forward. I always come to the table with a short-term survival plan and a long-term recovery strategy.

Mindset Matters: Partnership, Not Conflict

Renegotiating during a recession isn’t about squeezing the other side dry. It’s about working together to find solutions that protect both parties’ interests.

I’ve found that if I approach renegotiations respectfully, with honesty and flexibility, most vendors, landlords, and lenders are willing to work with me. Everyone understands that these are extraordinary times — but strong relationships are what carry us through them.

Final Thoughts

Recessions test our creativity and courage. Renegotiating isn’t a sign of weakness — it’s a sign of leadership. It’s recognizing when the conditions have changed and having the professionalism and persistence to adjust responsibly.

When uncertainty hits, I remind myself: survival isn’t just about cutting costs. It’s about protecting relationships, preserving trust, and building the kind of partnerships that will still be standing when better days return.

Let’s Keep Talking:

Jenny is a business insurance broker with Waypoint Insurance.

She is also a business development consultant with Impresario Partners, helping Canadian Business expand overseas.

She can be reached at 604-317-6755 or jholly-hansen@wbnn.news. Connect with Jenny on LinkedIn at https://www.linkedin.com/in/jenny-holly-hansen-365b691b/.  Connect with Jenny at BlueSky: https://bsky.app/profile/jennyhollyhansen.bsky.social

Let’s Meet Up:

Jenny Holly Hansen is a cohost with Chris Sturges of the Langley Impact Networking Group. You are welcome to join us on Thursday’s from 4pm to 6pm at: Sidebar Bar and Grill: 100b - 20018 83A Avenue, Langley, BC V2Y 3R4

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