TLDR: The article explains that company affordability is assessed by comparing their liquidity ratio and the ratio of current assets to proposed monthly rent. A company must have a liquidity ratio greater than 1 and an asset-to-rent ratio above 30 to be considered affordable. Guarantors are not accepted for company checks, as verification is based solely on the company's available funds.
Company Affordability
To assess a company's affordability, we compare its current liquidity ratio and the ratio of its current assets to the proposed monthly rent.
Affordability is based on a company having a liquidity ratio greater than 1, and an asset-to-rent ratio of greater than 30. A company that fails one or both ratios may struggle to meet their short-term obligations if it commits to a rental agreement.
Can a company use a guarantor?
We cannot accept a guarantor as part of a company check. As a corporate entity, the verification is based solely on the funds they have available to them, rather than an affordability calculation like a traditional HomePPL right to rent check.