Company Number: 13586478

Analysis Date: 2025-07-29 14:03 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   WANT THAT CAR LTD is a micro-entity operating in the used car sales sector with a short trading history since incorporation in 2021. The company shows improving net assets and shareholder funds, indicating modest growth. However, current liabilities exceed current assets, resulting in negative net current assets (working capital deficit), which suggests potential short-term liquidity pressure. The latest accounts reveal a negative net current asset position worsening from -£8,281 to -£13,362, which warrants caution. The director recently resigned, which may impact operational continuity. Given these factors, credit approval should be conditional on obtaining further information on cash flow management, trade creditor terms, and any planned capital injections or financing arrangements.

2. Financial Strength:

• Total net assets increased from £9,207 in 2023 to £14,612 in 2024, showing some equity build-up.
• Fixed assets were fully written down to zero in 2024 from £649, indicating no long-term tangible asset base.
• Current liabilities (£26,994) exceed current assets (£13,632), producing a negative net current asset figure of -£13,362, highlighting working capital strain.
• No long-term liabilities, which reduces gearing risk but also implies limited external financing support.
  Overall, the balance sheet reflects a small, asset-light operation with limited financial buffer and liquidity concerns.

3. Cash Flow Assessment:

• Negative working capital suggests potential difficulty meeting short-term obligations without external financing or efficient cash conversion.
• The company’s small scale and limited employee base (1 employee in 2024, down from 2) imply low operating overheads but possibly constrained operational capacity.
• Absence of fixed assets limits collateral for secured lending.
• No audit or detailed cash flow statements provided; recommend reviewing bank statements and debtor/creditor aging to assess cash flow cycle.

4. Monitoring Points:

• Track net current asset trend and liquidity ratios (current ratio, quick ratio) to detect improvement or further deterioration.
• Monitor director and management stability post director resignation in December 2024.
• Review timely filing of accounts and confirmation statements to assess compliance and management diligence.
• Watch for any capital injections or new credit facilities that might strengthen working capital.
• Keep an eye on trade debtor collections and creditor payment terms to manage cash flow.