FLEETRENT LIMITED

Executive Summary

FLEETRENT LIMITED is a recently incorporated truck leasing company with a positive but modest net asset base and working capital surplus. While it demonstrates initial financial stability, liquidity risks exist due to significant debtor balances and current liabilities exceeding cash. Credit approval is recommended conditionally, subject to ongoing monitoring of cash flow and debtor collections to ensure the company can meet its obligations.

FLEETRENT LIMITED - Analysis Report

Company Number: 14156469

Analysis Date: 2025-07-29 21:06 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   FLEETRENT LIMITED, incorporated in 2022 and operating in the truck leasing sector (SIC 77120), displays initial signs of business activity with a positive net asset position of £82,037 as at 31 Dec 2023. However, the company is very young with limited financial history and modest equity. The current liabilities of £343,712 significantly exceed cash holdings (£152,281), resulting in a working capital surplus of only £82,037. Credit approval is recommended on a conditional basis with close monitoring of cash flow management and debtor collections to ensure ongoing liquidity.

2. Financial Strength:
   The balance sheet shows total current assets of £425,749, primarily comprising debtors (£273,468) and cash (£152,281). Current liabilities stand at £343,712, including trade creditors (£200,122), tax liabilities, and other creditors. The net current asset position of £82,037 is positive but modest relative to liabilities, indicating the company is currently solvent. Shareholders’ funds have increased from £2 at inception to £82,037, reflecting initial retained earnings or capital injections. No long-term liabilities are reported, which reduces financial risk. Overall, the balance sheet is stable but the company remains small and early stage.

3. Cash Flow Assessment:
   Cash at bank of £152,281 provides some liquidity buffer, but the large debtor balance (£273,468) exposes the company to collection risk. The ageing and quality of these receivables are not detailed, which is a concern for cash flow reliability. Current liabilities exceed cash by more than double, signaling that timely conversion of debtors and careful management of payables is critical to meet obligations. The company employs only 2 staff, limiting overheads but also scale. Without an established track record or audited accounts, cash flow forecasting and creditor terms should be reviewed regularly.

4. Monitoring Points:

• Debtor collection performance (aging and bad debt provisions) to ensure liquidity is maintained.
• Cash flow statements and forecasts for ability to meet short-term liabilities.
• Timely payment of trade creditors and tax obligations to avoid penalties or supply disruption.
• Revenue growth and profitability trends as the company matures beyond its start-up phase.
• Any changes in director appointments or shareholder control that may affect governance or credit risk.