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Letting Agent Asking to see LTD Co Accounts for Credit Check

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Hi all,

 

I'm currently going through a move (renting) and am being asked to provide my company accounts to letting agents for their credit checks. Now I remember this seriously bugged me the last time I moved, as I run a Limited Company and it's my gut reaction that the company accounts are and should remain private. I'm paid via payroll on a regular basis as any other employee would be. I don't even submit full accounts to Companies House, so why should these nosy parkers get to see them?

 

Is there any legal justification for them asking this or can I politely refuse, offering my personal accounts / payslips only?

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You can politely refuse but they can then politely refuse to let you any of their properties! They can ask whatever credit checking information they want I'd think, but I don't know any specific rules on it. Are you the sole shareholder, ie is this in reality you conducting your personal business through a limited company? If so I can see why they would ask.

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I am the sole shareholder, but this is a legitimate business (not in a mafia sense) where I am the director and not an IR35 / permanent contractor / umbrella co thing.

 

It's more that it irks me how letting agents think they have entitlements to information over and above that which government agencies do. I'd be willing to show my balance sheet / profit & loss (i.e. info I share publicly anyway) to them, but my company's day to day cashflow is absolutely none of their business. I'm not applying for credit - in fact, quite the opposite.

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I wasn't suggesting it wasn't a legitimate business!

 

If your company were entering into a transaction with the government or a commercial organisation, or it was borrowing money from a bank, would you expect the other party to be satisfied only with your publicly available P&L and B/Sheet? I'd have thought that you'd be asked to disclose more than that, you'd be asked to disclose your operating financials as well wouldn't you? That seems the better comparison.

 

 

But whether you think it's reasonable is academic really. If that's what they want and you don't provide it you'll have to go somewhere else. Then you'll find out whether this just this letting agency or all of them.

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I know, I just felt I should clarify. :-)

 

No, not at all.. in fact I submitted my company's bank statements when applying for a loan to expand, but that's entirely understandable as it's a transaction between my business and the loan company. In contrast, this is a transaction between myself - an completely separate legal entity - and a letting agent, so I only expect to submit my personal bank statements / credit history etc.

 

I understand they would like to ensure that my business will continue to operate and can afford to pay me, but that can all be determined by looking at the BS / P&L reports. Investigating the company's bank statements / cashflow is information they simply aren't entitled to, in my opinion.

 

I understand.. I had this the last time I moved and it seems to be only some agents who ask. I did comply last time but it bothered me a lot to share that info, so this time I'd rather not.

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They ask for this because someone higher up has put it down on a tick box form and they dont know the difference between a sole ownership, partnership LLP or PLC.

Now, if you had put your job down as company director and just showed them your directors salary then they would go away quite happy as long as they had something that showed your income and your Credir reference files dont show any adverse markers. Problemmis now that you have told them something that isnt their business they wont be happy with just seeing your salary details. How they cope with civil servants I dont know, the govt is TRILLIONS in debt so entirely untrustworthy as a credit risk

 

best go to another lettings agency and tell them you work for Bloggs ltd as a director and produce a pay slip. One presumes the salary covers the rent and usual living expenses as they wont be able to cope with divvies as income

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