Company Number: 14705830

Analysis Date: 2025-07-29 19:03 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Bounce Marketing Limited is a recently incorporated private limited company (March 2023) operating in the IT consultancy sector. Its first-year financials show minimal activity with very low net assets (£7) and marginal positive working capital (£7). The company’s ability to service debt is currently limited due to negligible cash balances (£56) and creditors almost matching current assets. However, there are no overdue filings or adverse director records, and ownership is tightly held by an experienced director, which supports sound governance. Credit approval can be considered for modest facilities with conditions on monitoring cash flow and prompt repayment schedules until the company establishes a stronger financial base.

2. Financial Strength:
   The balance sheet is extremely thin with total current assets of £2,736 mostly represented by debtors (£2,680) and a negligible cash balance. Current liabilities are almost equal at £2,729, resulting in net current assets of just £7 and net assets of £7. There are no fixed assets or retained earnings, indicating the company is in the startup phase without accumulated profits. Shareholder funds are minimal, reflecting initial capital only. This thin equity base means the company has limited financial resilience and low buffer to absorb setbacks.

3. Cash Flow Assessment:
   Liquidity is a concern given the company’s cash on hand is only £56 against current liabilities of £2,729 due within one year. Although debtors exceed cash, reliance on timely collection of receivables will be critical to meet short-term obligations. Working capital is marginally positive but insufficient to comfortably cover liabilities. The absence of employees and low operational scale suggest current cash flow pressures may remain until business scales. Close monitoring of debtor collections and cash flow forecasts is essential.

4. Monitoring Points:

• Timely collection of receivables and reduction of current liabilities.
• Growth in cash balances and net current assets as a sign of improving liquidity.
• Filing of next accounts and confirmation statements on schedule to avoid compliance risk.
• Expansion in turnover and profitability to build retained earnings and strengthen equity.
• Continued absence of director conduct issues or adverse credit events.