Company Number: 14874314

Analysis Date: 2025-07-29 19:12 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Deborah Wise Wills Ltd is a recently incorporated private limited company with limited financial history. The company’s net assets are minimal at £127, and working capital is nearly neutral (£127), indicating very limited buffer to absorb financial shocks. The director has advanced £20,204 to the company, which currently appears as debtors, reflecting reliance on director funding rather than external financing or operational cash flow. The company has met all filing requirements and is active with no overdue accounts or returns. Given its early stage and low financial strength, credit approval should be conditional, requiring close monitoring of trading performance, cash flow generation, and future profitability before increasing credit exposure.

2. Financial Strength
   The balance sheet shows total current assets of £26,628 (mainly debtors £20,204 and cash £6,424) against current liabilities of £26,501, resulting in negligible net current assets of £127. There are no fixed assets. Shareholders’ funds are minimal (£127), all contributed by the director’s share capital (£100) and accumulated profits (£27). The company’s financial structure is very thin, with virtually no equity cushion or retained earnings to support liabilities. The presence of corporation tax and social security liabilities totaling £24,291 under current liabilities suggests tax obligations are due or payable. Overall, the financial strength is weak, typical of an early-stage business.

3. Cash Flow Assessment
   Cash balances are low at £6,424, which may support short-term liquidity but is limited relative to current liabilities of £26,501. The company owes significant amounts in corporation tax (£16,473) and social security (£7,818), which can pressure cash flow if not managed. The working capital position is nearly zero, and the reliance on director advances as debtors indicates a lack of operating cash inflow to date. Liquidity risk is present, and the company will need to generate positive operating cash flow or secure additional funding to meet obligations promptly.

4. Monitoring Points

• Cash flow generation and ability to meet corporation tax and social security liabilities on time.
• Development of trade debtors and creditors to assess operating cycle efficiency.
• Profit/loss trends in subsequent financial periods to evaluate business viability.
• Director funding levels and any changes in related party balances.
• Compliance with ongoing filing and statutory requirements.
• Any changes in company size, staff, or asset base that impact creditworthiness.