LUCID LOANS LTD

Executive Summary

Lucid Loans Ltd is a newly formed micro-entity with a weak financial position characterized by negative net assets and working capital, signaling poor liquidity and high risk. The company lacks sufficient operational cash flow or asset backing to support credit facilities at this stage. Without significant capital support or operational improvement, the company is not currently creditworthy.

LUCID LOANS LTD - Analysis Report

Company Number: 15098675

Analysis Date: 2025-07-29 17:15 UTC

1. Credit Opinion: DECLINE
   Lucid Loans Ltd is a recently incorporated micro-entity (incorporated August 2023) with a very weak financial position after its first year of operations. The company reports net liabilities of £28,445 and negative net current assets of £1,760, indicating insufficient working capital to meet short-term obligations. The significant long-term creditors (£26,685) further stress the balance sheet. There is no evidence of revenue or profit generation disclosed, and only one employee is reported. Given these factors, the company currently lacks the financial strength and cash flow capacity to service debt or credit facilities without substantial support or capital injection.

2. Financial Strength:
   The balance sheet shows a negative net asset position of £28,445 driven primarily by creditor obligations exceeding assets. Current assets are minimal (£1,411), while current liabilities are £3,171, resulting in negative working capital. The company’s total liabilities including long-term creditors amount to £29,856. No fixed assets or significant tangible assets are recorded to support borrowing. The negative equity indicates accumulated losses or initial funding through debt rather than equity. This weak financial footing places the company at high risk of insolvency if additional funding is not secured.

3. Cash Flow Assessment:
   With current liabilities exceeding current assets and no reported profit or cash reserves, liquidity is clearly strained. Negative net current assets imply difficulty in meeting short-term creditor demands. The company’s cash flow from operations is not disclosed but is likely insufficient given the balance sheet structure and minimal employee count. Without positive cash flow generation or capital infusion, the company’s ability to meet ongoing operational expenses or service debt is doubtful.

4. Monitoring Points:

• Improvement in net assets and working capital through equity capital injection or profit generation.
• Reduction in creditor balances or restructuring of liabilities to improve liquidity.
• Evidence of revenue growth and positive cash flow from operations in subsequent filings.
• Director and shareholder support details for capital funding or guarantees.
• Timely filing of accounts and confirmation statements to monitor compliance and financial updates.