Division 3.5.1 PurposeF1

In order to be financially viable, a legal entity must be:

• liquid: capable of covering its short-term commitments;

• solvent: capable of covering its medium and long-term commitments;

• profitable: generating profits, or at least with self-financing capacity.

As a consequence, the liquidity, the financial autonomy, the profitability and the solvency of the legal entity must be assessed in the financial analysis.

The validation services provide a user-friendly electronic tool to applicants to carry out their financial viability check for their own information.

The following ratios, noteworthy value and thresholds apply for legal persons. Specific criteria will be used for natural persons (see section 3.5.4).