POSITIVE IMPACT MARKETING LTD

Executive Summary

Positive Impact Marketing Ltd is a start-up with minimal financial history and modest net assets. It currently has sufficient liquidity to meet short-term liabilities but operates at a loss and with very limited scale. Credit extension should be cautious and conditional, pending evidence of business growth and operational cash flow improvement.

POSITIVE IMPACT MARKETING LTD - Analysis Report

Company Number: 15022592

Analysis Date: 2025-07-29 13:14 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Positive Impact Marketing Ltd is a newly incorporated company (July 2023) with limited financial history and minimal trading activity as reflected in its first set of accounts. The company shows a small positive net current asset position (£68) and shareholders’ funds of £68, indicating a very modest capital base. Given its nascent stage and low asset base, credit facilities should be cautiously extended with conditions such as personal guarantees or restrict credit limits until more substantial trading and financial performance data become available.

2. Financial Strength:
   The balance sheet reflects total current assets of £408 comprising primarily cash (£308) and debtors (£100), against current liabilities of £340. The company has no fixed assets and no long-term liabilities reported. The net assets of £68 and a negative retained earnings (loss) of £32 indicate that while the company is solvent, it is operating at a loss as expected in its start-up phase. The small scale and low capitalisation limit its financial strength and ability to absorb shocks.

3. Cash Flow Assessment:
   The cash position of £308 is positive but modest. With current liabilities at £340, the company has a working capital surplus of £68, indicating sufficient liquidity to cover short-term obligations currently. However, given the minimal cash buffer and absence of operational staff (average employees reported as zero), cash flow generation appears limited. Ongoing monitoring of cash flow cycles and debtor collections is critical.

4. Monitoring Points:

• Revenue growth and profitability trends in subsequent periods to assess business viability.
• Cash flow consistency and working capital management, especially debtor collection and creditor payment terms.
• Any changes in ownership/control or director appointments that could affect management quality.
• Timely filing of future accounts and confirmation statements to ensure compliance and transparency.
• Capital structure changes or additional funding rounds that might impact credit risk.