Company Number: 15075877

Analysis Date: 2025-07-20 15:00 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   NEJ Electrical Limited is a newly incorporated micro-entity (since August 2023) operating in electrical installation. The company’s financials show a modest net asset position of £1,828 with net current liabilities of £1,100, indicating a slight working capital deficit. Given the short operating history and limited financial scale, credit exposure should be conservative and carefully monitored. Approval is conditional upon maintaining positive cash flow and prompt payment performance, with limits aligned to the micro-entity scale.

2. Financial Strength:
   The balance sheet reflects very modest fixed assets (£2,928) and current assets (£11,720) offset by current liabilities of £12,820. This results in net current liabilities of £1,100, a liquidity concern that suggests the company is currently relying on short-term funding or director support to meet immediate obligations. Shareholders’ funds are positive but minimal at £1,828. The company’s financial structure is typical for a start-up micro business but currently lacks a buffer to absorb financial shocks.

3. Cash Flow Assessment:
   No profit and loss statement was filed, but the net current liabilities imply tight liquidity with potential cash flow constraints. The company employs only one person (the director), which keeps overheads low. The absence of audit and profit details limits cash flow visibility. Close attention should be given to working capital management, accounts payable terms, and cash conversion cycles to ensure the company can meet short-term liabilities without distress.

4. Monitoring Points:

• Liquidity ratios: current ratio and quick ratio to track improvement from negative net working capital
• Timeliness of future account and confirmation statement filings
• Profitability and cash flow trends as the company matures beyond its start-up phase
• Director’s financial support or external funding arrangements if liquidity tightens
• Any increase in trade creditors or delayed payments which could signal cash flow stress