LEAF IT OUT (SW) LTD

Executive Summary

Leaf It Out (SW) Ltd is a newly established micro-entity with a modest asset base and limited financial track record. While it currently shows a net liability position in working capital, its positive net assets and equity funding provide some cushion. Conditional credit approval is recommended, subject to conservative exposure limits and ongoing liquidity monitoring to mitigate the risk typical of early-stage companies.

LEAF IT OUT (SW) LTD - Analysis Report

Company Number: 14721281

Analysis Date: 2025-07-20 16:28 UTC

1. Credit Opinion:
   CONDITIONAL APPROVAL. Leaf It Out (SW) Ltd is a recently incorporated micro-entity with limited financial history. The company shows positive net assets (£14,637) but currently has net current liabilities (-£14,240), indicating short-term liquidity pressure. Given the small scale and early stage of operations, credit exposure should be limited and closely monitored. Approval may be granted with conditions such as a modest facility size, personal guarantees from key shareholders/directors, and periodic financial reviews to assess liquidity improvements.

2. Financial Strength:
   The balance sheet reflects a modest asset base (£30,790 fixed assets plus £13,350 current assets) offset by current liabilities (£27,590) and accruals/deferred income (£1,913). Net assets and shareholders’ funds are positive but small at £14,637. The company employs four people and is exempt from audit due to micro-entity status, limiting detailed financial assurance. The capital structure is equity-funded without significant debt, which lowers financial risk but also means limited buffer against trading losses.

3. Cash Flow Assessment:
   The negative net current assets position (-£14,240) suggests potential working capital constraints. Current liabilities exceed current assets, indicating that immediate cash resources may be insufficient to cover short-term obligations. This weak liquidity position is typical for start-ups but requires attention. Cash flow forecasts and management of payables/receivables will be critical to ensure ongoing operational viability. No information on cash balances or turnover was provided, so further enquiry is recommended before extending credit.

4. Monitoring Points:

• Quarterly updates on cash flow and working capital position to detect any liquidity deterioration.
• Timely filing of future accounts and confirmation statements to maintain compliance transparency.
• Monitoring directors’ conduct and any changes in ownership/control that could affect governance.
• Review of business performance metrics as company moves beyond start-up phase, including revenue growth and profit margins.
• Assessment of any new debt or credit facilities taken on and their impact on financial stability.