GRAND GLOBAL IMPORT LTD

Executive Summary

Grand Global Import Ltd is a small trading company with minimal equity and significant reliance on director loans for funding. While currently compliant and operationally active, the company’s liquidity is constrained with very low cash reserves and elevated stock levels. Conditional credit approval is recommended with close monitoring of cash flow, director loan balances, and working capital efficiency to ensure ongoing debt servicing capability and financial stability.

GRAND GLOBAL IMPORT LTD - Analysis Report

Company Number: 13507551

Analysis Date: 2025-07-20 18:05 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Grand Global Import Ltd is a recently incorporated private limited company (established 2021) trading in wholesale of tobacco, alcoholic beverages, and fruit & vegetables. The company shows a positive net asset position but with very modest equity (£375) and is reliant on director loans (£36,178 as of 2024) for funding. The current liabilities have increased significantly, but these are mainly director loans, indicating internal support rather than external debt. The company has no overdue filings and appears compliant with statutory requirements. However, limited cash reserves (£308) and reliance on director loans raise concerns about liquidity and short-term debt servicing capability. Approval is conditional on continued director support and monitoring of operating cash flow and profitability.

2. Financial Strength
   The balance sheet shows total current assets of £36,553, including stock of £28,000 and debtors of £8,245. Current liabilities are reported as £36,178 but these are entirely director loans classified as long-term creditors, which reduces pressure from external creditors. Net assets remain stable but very low at £375, reflecting minimal shareholder equity and accumulated profits. The company’s capital structure is thin, with only £100 in share capital and £275 in retained earnings. The increase in director loans from £9,797 in 2023 to £36,178 in 2024 indicates reliance on internal funding rather than external borrowing, which poses a risk if director support wanes.

3. Cash Flow Assessment
   Cash on hand is negligible (£308), indicating very limited liquid resources to meet immediate obligations. Debtors have decreased from £10,571 in 2023 to £8,245 in 2024, potentially reflecting slower collections or lower sales volumes. Stock levels have increased significantly to £28,000, which could tie up working capital and impact liquidity if turnover is not swift. The absence of external short-term creditors and reliance on director loans improves the liquidity picture somewhat but underlines the need for careful working capital management. Cash flow from operations and ability to convert stock and debtors into cash will be critical to meet ongoing expenses and reduce reliance on director loans.

4. Monitoring Points

• Liquidity metrics: Monitor cash balances and current ratio to ensure sufficient liquid assets to cover short-term needs.
• Director loan account: Track changes in director loans and any repayments or additional injections, as these are key to funding operations.
• Stock turnover: Review inventory levels and turnover rates to assess if stock build-up is sustainable or indicative of weak sales.
• Debtor collections: Monitor aging of receivables to mitigate credit risk and improve cash inflows.
• Profitability trends: Watch for improvements in retained earnings and net assets over time to build financial resilience.
• Compliance: Ensure continued timely filing of accounts and confirmation statements to avoid regulatory penalties.