Company Number: 12990902

Analysis Date: 2025-07-29 13:04 UTC

1. Credit Opinion: CONDITIONAL APPROVAL Clear and Credible Ltd is a small private limited company operating in business support, PR, and legal-related services. The company shows a modest but stable net asset position (£2,562 at 31 Oct 2024) and positive working capital, indicating it can meet short-term obligations. However, the net current assets have declined from £2,288 in 2023 to £1,309 in 2024, and current liabilities have nearly doubled (£4,733 vs. £2,542). The company remains small with limited financial resources and no significant fixed asset base. Given its young age (incorporated 2020) and small scale, approval is recommended on a conditional basis, requiring close monitoring of cash flow and creditor levels. Further assurance on revenue stability and debtor collection is advisable before extending significant credit facilities.

2. Financial Strength:

• Shareholders’ funds are positive at £2,562, down slightly from £2,982 the previous year.
• Tangible fixed assets increased from £694 to £1,253 but remain small in absolute terms.
• Current assets rose modestly to £6,042, mainly cash (£5,802), with a small debtor balance (£240).
• Current liabilities nearly doubled to £4,733, primarily other creditors, with no tax or social security due.
• Net current assets remain positive but have declined, indicating tightening liquidity. Overall, the balance sheet shows a small but solvent company with limited financial buffer and some increase in short-term liabilities.

3. Cash Flow Assessment:

• Cash at bank increased from £4,830 to £5,802, supporting liquidity.
• Debtors are very low at £240, suggesting limited credit risk from customers.
• Current liabilities have almost doubled, which may pressure cash flow if continuing.
• Positive net current assets (£1,309) indicate working capital is sufficient for current operations but with reduced cushion.
• The absence of employees suggests low fixed overheads, which may help maintain cash flow.
• No overdrafts or borrowings are reported, implying reliance on internal cash generation. Liquidity appears adequate but should be monitored given the rise in creditors.

4. Monitoring Points:

• Track current liabilities and creditor aging closely to avoid liquidity strain.
• Monitor debtor turnover and cash collection to maintain cash reserves.
• Review revenue trends and profitability once profit and loss accounts are available.
• Watch for any increase in financial obligations or changes in payment terms.
• Assess director’s plans for growth or capital injection given small equity base.
• Confirm no related-party or contingent liabilities that may impact liquidity.