Company Number: SC766371

Analysis Date: 2025-07-29 13:55 UTC

1. Credit Opinion: APPROVE with conditions. ARTEC TRADE LIMITED is a newly incorporated micro-entity (incorporated April 2023) with its first financial year ended March 2024. The company shows positive net assets and working capital, indicating initial financial stability. However, as a start-up with minimal operating history (one employee, limited fixed assets), credit exposure should be cautiously sized and monitored. Approval is contingent on regular updates of financial performance and confirmation of cash flow sufficiency to meet obligations.

2. Financial Strength: The balance sheet as of 31 March 2024 reflects a modest but positive financial position. Fixed assets stand at £965, current assets at £6,031, and current liabilities at £2,314, yielding net current assets of £3,717 and net assets/shareholders’ funds of £4,682. This indicates that the company is solvent with a positive equity base. The micro-entity classification and small asset base are typical for a new small business. There is no indication of debt beyond current liabilities, suggesting limited leverage risk at this stage.

3. Cash Flow Assessment: Current assets primarily consist of cash and trade receivables (details not specified), providing a net working capital buffer of £3,717. This positive working capital suggests the company can meet short-term liabilities as they fall due. However, given the early stage of the business and limited employee count, cash flow volatility risk remains until a longer trading history is established. Monitoring actual cash inflows and outflows will be critical to ensure ongoing liquidity.

4. Monitoring Points:

• Regular review of updated management accounts and cash flow forecasts to assess ongoing liquidity.
• Confirmation of any new borrowings or changes in liabilities that may impact financial stability.
• Monitoring trading performance and profitability trends as the company matures beyond its start-up phase.
• Review of director conduct and control, noting that Mr. Yunus Akyuz holds full ownership and directorship, which concentrates control but also responsibility.