Company Number: 13041237

Analysis Date: 2025-07-20 13:30 UTC

1. Credit Opinion: APPROVE with monitoring.
   Model Me This Limited shows a stable and improving financial position with positive net current assets and shareholders' funds increasing steadily over four years. The micro-entity status limits detailed financial disclosure, but available data suggests prudent financial management with no overdue filings. The company is relatively young (incorporated in late 2020) but has demonstrated steady growth in net assets from £423 in 2020 to £11,761 in 2023. Directors have advanced funds to the company, which indicates commitment but also reliance on related party financing; this should be monitored. Overall, the company appears capable of meeting its short-term obligations and servicing modest credit facilities, subject to continued business performance.

2. Financial Strength:
   The balance sheet is healthy for a micro-entity. Current assets increased from £5,118 in 2020 to £15,849 in 2023, while current liabilities have remained relatively stable around £4,000-£4,500. This results in a strong positive net working capital position (£11,761 in 2023). Shareholders' funds have increased correspondingly, reflecting retained earnings or equity injections. The company has no fixed assets listed, indicating a light asset base typical of an IT consultancy. The reliance on director advances (approx. £15,655 combined as of 2023) is notable but manageable in the current context.

3. Cash Flow Assessment:
   Liquidity appears sufficient, with a comfortable margin of current assets over current liabilities. The working capital position is solid, supporting day-to-day operations without liquidity strain. However, the balance sheet shows director loans as a significant source of funding rather than external borrowing or operational cash flow. The absence of audit or detailed cash flow statements restricts deeper analysis but the positive net current assets and lack of overdue liabilities suggest prudent cash management.

4. Monitoring Points:

• Continued reliance on director advances should be watched; any changes in related party funding or repayment terms could impact liquidity.
• Monitor any changes in current liabilities or overdue payments that could signal cash flow stress.
• Keep track of revenue growth and profitability trends through future financial statements as these will underpin the company’s ability to service debt independently of director loans.
• Watch for any changes in directorship or control that might affect governance or financial stewardship.