Watch Claude analyze multiple companies and provide clear lending recommendations based on financial data
You:
Tell me about a company named Comdevelopment in the UK? Who owns it?
Claude:
I'll search for information about Comdevelopment in the UK for you.
Using: get_company_by_name("Comdevelopment")
I found multiple companies named Comdevelopment Limited in the UK. Let me get more detailed information about the most established one with company number 03498208:
Using: get_company_details("03498208")
Company Overview
Comdevelopment Limited (Company Number: 03498208) is an active private limited company incorporated on January 23, 1998. The company operates in the IT services sector.
Ownership
The company is owned and directed by Mr. Nicholas John Edwards, who has been the sole director since January 25, 1998 (over 26 years).
Key Details
- Previous Name: Originally "OBLIVION LTD"
- Website: https://comdevelopment.com
- Company Type: Micro-sized company
- Share Capital: £102
Financial Status
As of their latest accounts (January 31, 2024):
- Shareholders' funds: £31,067
- Current assets: £31,173
- The company appears to be financially stable
You:
Would you lend them money?
Claude:
⚠️ I'd be cautious about lending money to Comdevelopment Limited
Reasons for Caution:
1. Limited Financial Transparency
- As a micro company, they only file abbreviated accounts
- No revenue or profitability data available
- Cannot assess debt service capability
2. Declining Asset Base
- Shareholders' funds decreased from £67,138 (2015) to £31,067 (2024) - a 54% decline
- Current assets dropped from £89,815 to £31,173
- Suggests business decline or value extraction
3. Red Flags
- 22 companies with identical names is highly unusual
- Single director structure = key person risk
- No disclosed turnover figures
Positive Factors:
- ✓ 26+ years in business
- ✓ Consistently positive shareholders' funds
- ✓ Still filing accounts on time
Bottom Line: Without full accounts showing revenue and cash flow, I wouldn't lend money. The declining assets and lack of transparency present too much risk.
You:
Ok, there is another company I am thinking of lending £100k to, it is called IM3 Ltd, what do you know about that? The companies house number is NI664835
Claude:
Let me look up that specific Northern Ireland company for you.
Using: get_company_details("NI664835")
Using: calculate_financial_ratios("NI664835")
Using: quick_financial_summary("NI664835")
✅ Assessment of IM3 (UK) LIMITED for £100k Loan
This is a MUCH better lending prospect. Here's my analysis:
✅ Positive Indicators:
Strong Financial Growth
- Net worth: £86k (2020) → £802k (2023) - 831% growth
- Cash: £168k → £325k
- Current assets: £442k → £1.26 million
Excellent Liquidity
- Current ratio: 2.26 (excellent)
- Working capital: £703k (7x your loan)
- Cash alone: £325k (3.25x your loan)
Medical Device Manufacturing
- Stable, growing sector
- 5-year-old established company
- Recent Swiss executive appointments suggest expansion
⚠️ Considerations:
- No revenue/profit data available (filed as exempt)
- 831% growth needs explanation - organic or capital injection?
- New directors appointed October 2024
📊 Loan Assessment:
£100k loan vs £802k net worth | 12.5% LTV (very conservative) |
£100k loan vs £325k cash | 31% of current cash |
£100k loan vs £703k working capital | 14% of working capital |
✅ Recommendation: PROCEED WITH CAUTION
This company appears financially capable of handling a £100k loan, BUT:
- Request full management accounts showing revenue and profitability
- Understand the growth story - why such rapid expansion?
- Purpose of loan - given their £325k cash, why do they need to borrow?
- Consider security: Personal guarantees, debenture over assets
- Shorter term (12-24 months) to test relationship
What Just Happened?
Claude analyzed 3 companies in under 2 minutes, calculating financial ratios, identifying red flags, and providing clear lending recommendations. This would typically take 30-60 minutes of manual research.