Company Number: NI699212

Analysis Date: 2025-07-29 15:07 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   R9 TAN LTD is a newly incorporated micro-entity with a modest asset base and positive net current assets. The company shows a small working capital surplus and positive shareholders’ funds, indicating initial financial stability. However, given its very recent incorporation (July 2023) and limited operating history, the credit risk is inherently higher. Approval is conditional on ongoing monitoring for stable cash flow generation and operational performance as the business establishes itself.

2. Financial Strength:
   The balance sheet as of 31 July 2024 reports fixed assets of £9,471 and current assets of £6,467 against current liabilities of £6,092, resulting in net current assets of £375. Total assets less current liabilities stand at £9,846 with shareholders’ funds of £8,542. The company has no reported external debt or director loans, which reduces financial risk. The equity position is positive but modest, reflecting early-stage capitalization. The company benefits from a clean financial structure without contingent liabilities disclosed.

3. Cash Flow Assessment:
   Current assets slightly exceed current liabilities, yielding a positive but narrow working capital buffer of £375, suggesting limited liquidity cushion. There is no detailed cash flow statement provided, so cash generation from operations is unknown. The small net current asset position means liquidity management will be critical, especially if the company faces unforeseen expenses or delayed receivables. The absence of advances or guarantees from directors indicates reliance on operational cash flows rather than related-party funding.

4. Monitoring Points:

• Track subsequent annual accounts and cash flow statements for evidence of revenue growth and profitability.
• Monitor working capital trends closely; a widening gap between current liabilities and assets could signal liquidity stress.
• Watch for any director loans or external financing which may indicate cash flow difficulties.
• Review payment history on any credit facilities or trade payables to assess financial discipline.
• Given the director’s full ownership and control, assess any changes in management practices or company strategy that might impact credit risk.