Company Number: 12717121

Analysis Date: 2025-07-29 20:32 UTC

1. Credit Opinion: DECLINE
   PAYEDA LIMITED shows worsening negative net assets and net current liabilities over recent years, with no positive turnaround evident. The company is a micro-entity with very limited assets (£10,816 current assets in 2024) and significant short-term obligations (£32,554 current liabilities in 2024), resulting in a net current liability of £17,202. This indicates an inability to meet short-term debts from available liquid resources, which poses a high risk for lending or extending credit. The absence of employees and lack of audit also limit transparency. Without evidence of profitability or positive cash flows, credit extension is not advisable.

2. Financial Strength: Weak
   The balance sheet demonstrates declining equity from £10,000 positive at inception in 2020 to a negative shareholders’ fund of £17,202 in 2024. Current liabilities have increased substantially, while current assets have decreased slightly, worsening working capital deficits. The company’s negative net assets point to accumulated losses or funding shortfalls. Micro-entity size and negative equity signal weak capitalization and financial fragility.

3. Cash Flow Assessment: Insufficient Liquidity
   The current assets (£10,816) are significantly less than current liabilities (£32,554), resulting in a negative working capital position. This suggests liquidity stress and an inability to cover short-term obligations without external funding. The company also reports zero employees, implying minimal operational scale or possibly dormant status in terms of business activity. No cash flow statements are provided, but the balance sheet indicates ongoing funding challenges.

4. Monitoring Points:

• Monitor upcoming filings and any changes in current liabilities or assets to detect further deterioration or improvement.
• Watch for any external financing injections or capital restructuring that could improve liquidity.
• Track changes in directors or related party transactions that might affect financial stability.
• Monitor operational activity and revenue generation to assess if the company can improve cash flows and profitability.
• Observe any overdue filings or compliance issues as early warning signs of distress.