Cash Runway: Alternative to Income Verification

What is Cash Runway?

Cash Runway is an alternative to verified income that Lumen can use to calculate if a deal meets the approval requirements. Cash Runway uses the Current Balances that have been verified through linked bank accounts, to calculate how long the applicant(s) would be able to make the monthly rent payments based on these balances.
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For instance, high-net-worth individuals like doctors, lawyers, or contractors with inconsistent payment frequencies, or self employed business owners who do not have themselves on a payroll may not be able to verify their income due to the requirements for income verification. However, applicants and guarantors with unverifiable income but exceptional verified balances could still get a positive Lumen Result due to the Cash Runway check.
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How does Cash Runway work?

• Cash Runway is calculated by multiplying the monthly rent by the lease term, then divided by the sum of the verified current balances on the deal.
  ​(Rent x lease term) / Sum of current balances
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• If the ratio is within or higher than the minimum requirement, it will result in a positive Lumen result.
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• If the ratio is lower than the minimum requirement, it will result in a negative Lumen result.
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• Cash Runway is a fallback check, not a standalone filter. In order for the Cash Runway filter to be enabled, the income-to-rent ratio filter must also be enabled.
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• Lumen will only check Cash Runway if the Income-to-rent ratio minimum is not met.
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• When a guarantor is present on a deal the Cash Runway filter can be applied only to the guarantor's current balances, or the filter can combine both the applicant's and guarantor's ratio