Company Number: 13301391

Analysis Date: 2025-07-29 19:15 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   HAQQ&INSAF LTD is a relatively new micro-entity engaged primarily in car rental and real estate activities. The company shows stable net asset levels around £91k-£98k over the last 3 years, indicating steady equity but limited growth. Current liabilities exceed current assets by a moderate amount (£60.7k net current liability in 2024), reflecting some short-term liquidity pressure. The company has not yet demonstrated significant scale or profitability data, and average employee count has reduced from 3 to 1, which may affect operational capacity. Approval is recommended with conditions to monitor liquidity and cash flow closely, and to review updated financials for signs of improving working capital and profitability before increasing credit limits.

2. Financial Strength:
   The balance sheet shows fixed assets increasing modestly from £100.9k in 2021 to £151.8k in 2024, indicating some investment in long-term assets. However, the current liabilities are consistently higher than current assets, resulting in a net current liability position each year (£60.7k in 2024). Overall net assets remain stable around £91k-£98k, supported by shareholder funds matching net assets. The company maintains a small equity base with no apparent long-term debt, but working capital constraints and reliance on short-term creditor financing may limit financial flexibility.

3. Cash Flow Assessment:
   Despite stable net assets, the company’s liquidity appears strained as net current liabilities have grown from £2.6k in 2021 to £60.7k in 2024. The increase in current liabilities relative to current assets suggests pressures on cash flow and working capital management. The reduction in employee numbers and no audit requirement indicate limited operational scale and possibly constrained cash generation. Without detailed profit and loss or cash flow statements, it is prudent to assume cash flow is tight and requires monitoring for timely repayment capacity.

4. Monitoring Points:

• Liquidity and working capital trends: Monitor changes in current assets vs current liabilities in subsequent accounts.
• Profitability and cash flow: Request interim management accounts to assess earnings and operational cash flow.
• Debt levels and creditor terms: Watch for increases in short-term debt or late payments.
• Operational scale and staffing: Changes in employee numbers and business activity impacting revenue.
• Director conduct and compliance: Ensure continued filing of accounts and confirmation statements on time; no adverse director events reported currently.