Company Number: 13951958

Analysis Date: 2025-07-20 15:11 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   ASANTE-IT LIMITED is a micro-entity operating in IT consultancy with a very recent incorporation date (2022). The company shows a net liability position as of the latest accounts (net assets of -£852), a deterioration from prior year’s positive net assets of £100. Current liabilities exceed current assets, though net current assets remain positive (£1,217) indicating some short-term buffer. The negative equity and declining asset base suggest limited financial strength and possible reliance on director loans and external funding. Credit approval should be conditional on close monitoring of liquidity and profitability improvements, and potentially personal guarantees or collateral given the thin capital base.

2. Financial Strength
   The balance sheet shows fixed assets declining from £9,690 to £7,980. Current assets have dropped significantly from £4,606 to £3,101, while current liabilities are still substantial at £9,941. The company carries long-term creditors of £9,941 (down from £12,999), indicating significant debt obligations. The negative net assets position (-£852) and negative shareholders’ funds indicate the company is currently undercapitalised and financially weak. The director loan of £2,067 partially supports working capital needs but adds to financial risk. Overall, the balance sheet is fragile with limited equity buffer.

3. Cash Flow Assessment
   Net current assets of £1,217 suggest the company can meet short-term liabilities but with limited headroom. The reduction in current assets and high creditors signal tight liquidity. Absence of detailed cash flow statements limits precise liquidity analysis but the working capital position and director loan reliance highlight potential cash constraints. The company must improve cash generation or secure additional funding to sustain operations and meet obligations timely.

4. Monitoring Points

• Monitor quarterly management accounts for any improvement in profitability and cash flow generation.
• Watch working capital trends, especially debtor collection and creditor payment terms.
• Track director loan balances and any changes in external debt facilities.
• Review any new financing arrangements or capital injections to address negative net assets.
• Assess any changes in business contracts or client base that impact revenue stability.