FUTURE TECH PVT LTD

Executive Summary

Future Tech Pvt Ltd is an early-stage micro business with minimal assets and no working capital, fully reliant on director loans. Its current financial profile shows zero net assets and no liquid resources, raising significant concerns about its ability to service credit facilities. Credit approval is not advisable without evidence of improved financial strength or operational cash flow.

FUTURE TECH PVT LTD - Analysis Report

Company Number: 13821170

Analysis Date: 2025-07-20 18:07 UTC

1. Credit Opinion: DECLINE
   Future Tech Pvt Ltd shows limited financial substance and repayment capacity at this stage. The company is a micro entity with minimal assets (£21,600 fixed assets) fully offset by equal creditors due after one year (£21,600 director’s loan), resulting in zero net assets and no working capital. Current assets and cash are nil, indicating no liquid resources to service short-term obligations or debt. The absence of revenue, profitability, or positive cash flow data creates uncertainty about its ability to meet financial commitments. Given the company’s early stage, lack of financial buffers, and reliance on director loans, it poses a high credit risk. Approval for credit facilities is not recommended without substantial financial improvement or additional security.

2. Financial Strength:
   The balance sheet is very thin. Fixed assets of £21,600 are funded entirely by a director’s loan, creating a leveraged position with no equity or net asset value. The company has no current assets or cash, resulting in zero net current assets and no working capital cushion. Shareholders’ funds are zero, indicating no retained earnings or capital injection beyond director financing. The company’s financial position does not reflect operational scale or profitability, consistent with a startup or inactive trading status. This lack of equity and liquidity undermines financial resilience.

3. Cash Flow Assessment:
   There is no evidence of positive cash flow or working capital. Current assets and cash balances are zero, meaning the company has no liquid resources to cover immediate liabilities or operational expenses. The director’s loan represents a liability that will require repayment or refinancing. Without cash inflows from business activities, the company’s ability to generate funds to service debt or working capital needs is unproven and uncertain.

4. Monitoring Points:

• Monitor filing of next accounts for revenue and profitability development.
• Watch for cash balance changes and reduction in director loans or other liabilities.
• Confirm any new financing arrangements or capital injections to strengthen equity.
• Observe changes in current assets and liabilities to assess working capital trends.
• Track management appointments and changes that might impact governance and financial stewardship.