issue with company check on flat rental

[ladymuck]

Why not run a credit check on your own company and see what it comes back with? We're all told to check our credit records personally so I guess why wouldn't you do the same for your LtdCo if you're planning on a transaction that could affect its rating?

[northernladuk]

I need to know how it is possible that my company gets this valoration:

""We have purchased the risk report from Experian and unfortunately the company is failing to meet our minimum criteria in relation to credit limit, credit rating and Delphi score. Their credit limit is £1,600 and the credit rating is £800. Their Delphi score is 56/100, our minimum requirement is 60."

Never have asked for a credit, doesn't have any debt, it has around £110,000 in the business bank account and I am in a contract of a £500 rate. And nobody contacted my accountant. Does somebody know if it makes sense? or better said,if it could be real?

Did you not read the post above yours. That's probably the issue.

[biergarten]

Did you not read the post above yours. That's probably the issue.

yeah, i read it. I contacted the head office from the agency and they replied me quickly and want me to contact them and pass all the information.

And called the Letting Hub and they couldn't find any reference of my company being asked, although they need to double-check and will call me back tomorrow. They couldn't understand neither that my accountant was not contacted.

[biergarten]

Why not run a credit check on your own company and see what it comes back with? We're all told to check our credit records personally so I guess why wouldn't you do the same for your LtdCo if you're planning on a transaction that could affect its rating?

cheers, probably will try it tonight.

[Lance]

I need to know how it is possible that my company gets this valoration:

""We have purchased the risk report from Experian and unfortunately the company is failing to meet our minimum criteria in relation to credit limit, credit rating and Delphi score. Their credit limit is £1,600 and the credit rating is £800. Their Delphi score is 56/100, our minimum requirement is 60."

Never have asked for a credit, doesn't have any debt, it has around £110,000 in the business bank account and I am in a contract of a £500 rate. And nobody contacted my accountant. Does somebody know if it makes sense? or better said,if it could be real?

You have a limited liability company. Do you know what limited liability means?
In summary.... a company is a far higher credit risk than a person. You could easily drain the bank, dissolve the company and leave the flat owner with no recourse to get the money.

[northernladuk]

You have a limited liability company. Do you know what limited liability means?
In summary.... a company is a far higher credit risk than a person. You could easily drain the bank, dissolve the company and leave the flat owner with no recourse to get the money.

Well they can pierce the veil and come after you personally but that's pretty rare so you in reality you are right.

[TheCyclingProgrammer]

If this is really an issue of company credit rating, then as somebody else said, just rent personally and claim back the cost from YourCo. The tax position is the same whether you pay personally and reclaim or put it in the company name - the accommodation is for *you*, not YourCo, therefore it needs to pass the same tests either way.

[radish2008]

The agent is trying to bum you.

Where are you looking ? I was down there for 5 years, rented 3 different flats and did a house share. Never heard of anything like this.

[LondonManc]

Let it go, ask to book an appointment to view a property as far as possible from their agency office at 3:30pm. At 3:35pm, explain that you've been dragged into an unavoidable meeting and you'll have to give it a miss.

Oh and better going with AirBnB or a room share for a contract. I got stung for four months rent after client politics had an extension curtailed after 2 months into a six month rental. That's without all the hidden fees, cleaning charges, etc.

[handyandy]

I guess there may be an aspect of the agent trying it on for whatever motivations - they are generally not that ethical.

However, just rent it personally and claim the expenses back. It really isn't that big a deal and part of the problem you are facing putting it through the LTD is that that is a very unusual way of renting a place so the letting agency industry is not geared up for it. The only company rentals they would usually get are going to be from much bigger companies who have lot's of expats or consulting workers and have a central department (often outsourced to a specialist 'mobility' company). One man LTD's just don't do this tat often and are (fairly or not) seen as a credit risk.