NAVIGATE BUSINESS FINANCE LIMITED

Executive Summary

Navigate Business Finance Limited demonstrates improving financial position with growing net assets and positive working capital. However, limited cash reserves and reliance on director loans require conditional credit approval and ongoing monitoring of liquidity and debtor management. The company’s compliance and governance appear sound, supporting cautious lending within established credit limits.

NAVIGATE BUSINESS FINANCE LIMITED - Analysis Report

Company Number: 13130328

Analysis Date: 2025-07-19 12:23 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Navigate Business Finance Limited shows improving financial health with positive net current assets and shareholders' funds increasing from £100 in 2023 to £5,058 in 2024. The company is active, filing accounts and returns on time, indicating good compliance. However, it remains a small private company with limited financial history and modest cash balances (£829 in 2024). The reliance on director advances (£16,080 owed by director M.P. Riches) suggests external support is needed for liquidity. Credit approval should be conditional on continued positive trading performance and close monitoring of cash flows and director support.

2. Financial Strength:
   The balance sheet indicates gradual strengthening. Shareholders’ funds increased significantly to £5,058 as of March 2024 from near break-even the prior year, reflecting retained earnings accumulation. Current assets (£21,699) exceed current liabilities (£16,641), providing a net current asset position of £5,058. There are no fixed assets or long-term liabilities reported, which is typical for a small finance company. The modest equity base and low cash reserves highlight limited financial buffers, but no signs of over-leverage or excessive short-term debt. The company’s capital structure is simple, with £100 share capital fully paid.

3. Cash Flow Assessment:
   Cash at bank dropped from £5,707 in 2023 to £829 in 2024, which could indicate cash outflows for operations or investments. Debtors have increased substantially, suggesting the company has extended more credit or delayed collections, which could pressure liquidity. Current liabilities increased moderately but remain manageable. The director loan balance increasing to £16,080 shows reliance on shareholder funding to support working capital. Overall liquidity is adequate but tight, with a need to improve cash conversion cycles and maintain director support to avoid funding shortfalls.

4. Monitoring Points:

• Cash and debtor days: Watch for any deterioration in cash balances or slow collections that could constrain liquidity.
• Director advances: Monitor repayment or further increases in director loans as an indicator of funding dependency.
• Profitability trends: Although income statements are not provided, assess profitability when available to ensure retained earnings growth continues.
• Compliance and filing: Maintain oversight on timely filings and any changes in company status or director appointments.
• Credit risk concentration: Given the nature of the business (other credit granting), evaluate client concentration and potential defaults impacting debtor quality.