BALANCING FINANCE LTD

Executive Summary

Balancing Finance Ltd is a newly incorporated micro-entity with a negative net asset position primarily due to a director loan being the sole asset. While compliance with statutory filings is satisfactory, the company currently exhibits high solvency and liquidity risks with limited evidence of operational activity. Further investigation into the director loan and business plans is essential to assess future viability.

BALANCING FINANCE LTD - Analysis Report

Company Number: 15033727

Analysis Date: 2025-07-29 20:42 UTC

1. Risk Rating: HIGH
   The company shows negative net current assets and net assets of -£5,865, indicating liabilities exceed assets. This negative working capital position, combined with the director’s personal loan to the company, raises solvency and liquidity concerns.

2. Key Concerns:

• Negative Net Assets and Working Capital: The company’s balance sheet reflects a net liability position (-£5,865), suggesting it is currently insolvent on a balance sheet basis.
• Director Loan as Sole Asset: The only asset disclosed is a debt owed to the company by the director (£5,865), with no repayment terms or interest, indicating a potential cash flow problem and reliance on the director’s personal funds.
• Lack of Operational History and Revenue Data: Incorporated in July 2023 and filing micro-entity accounts with minimal activity, there is no evidence of sustainable business operations or income generation.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is current on both annual accounts and confirmation statement filings, showing good regulatory compliance to date.
• Single Director/Owner with Full Control: Mrs. Jaimini Parekh holds 100% control and directorship, which can streamline decision-making and facilitate rapid responses to financial issues.

4. Due Diligence Notes:

• Verify the nature and future plans for the director loan—will it be converted, repaid, or written off?
• Obtain detailed cash flow forecasts and business plans to assess operational viability and funding strategy.
• Confirm if any trade creditors or other liabilities exist beyond those reported.
• Investigate the status and purpose of the company website domain, which currently appears inactive and marked for sale, possibly indicating limited business activity.