Company Number: 13622366

Analysis Date: 2025-07-29 12:35 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Belexway Services Ltd is a recently incorporated private limited company operating in lead generation (SIC 46180). The company shows modest but consistent growth in net assets and net current assets over the last three years, indicating improving financial stability. However, current liabilities have increased significantly in the latest period, nearly matching current assets, which tightens liquidity. The company currently has positive working capital but with a narrow margin, and cash balances have increased sharply, which is a positive liquidity signal. The director is singular, indicating a small management team, which may limit operational resilience. Credit approval is recommended with caution, dependent on monitoring debtor collection and creditor payment terms closely.

2. Financial Strength:

• Net assets increased from £7,951 in 2023 to £9,908 in 2024, reflecting slight retained earnings growth.
• Current assets rose significantly from £64,649 to £193,580, mostly due to a large increase in cash (£48,672 to £160,820).
• Current liabilities also increased substantially from £56,698 to £183,672, primarily trade creditors. This rise in creditors could indicate stretched payment terms or delayed supplier payments.
• The company’s balance sheet remains small but stable, with shareholders’ funds of £9,908 in 2024.
• No long-term liabilities or fixed assets are reported, which is typical for a micro to small service business.

3. Cash Flow Assessment:

• Cash on hand has increased nearly fourfold year on year, suggesting improved liquidity and cash management.
• Debtors have doubled, which could indicate growing sales but also increased credit risk or slower collections.
• The net current asset position is positive but marginal (£9,908), indicating limited buffer to cover short-term liabilities.
• The significant increase in trade creditors (£55k to £183k) could be a concern if it reflects delayed payments rather than strategic supplier terms. This could pressure cash flow if not managed carefully.
• Overall, the company’s liquidity position is currently adequate but requires close monitoring.

4. Monitoring Points:

• Track debtor turnover days and creditor payment terms to ensure working capital cycle remains manageable.
• Monitor cash balances and short-term liquidity closely, especially given the sharp increase in trade creditors.
• Review the company’s ability to convert debtor balances into cash promptly.
• Assess any changes in business scale or client base that might affect cash flow or credit risk.
• Confirm no adverse director conduct or legal proceedings that could impact financial stability.