RJ BUSINESS SOLUTIONS LTD

Executive Summary

RJ Business Solutions Ltd demonstrates adequate but declining financial strength with positive net current assets supporting short-term obligations. The company’s micro entity size and limited financial resources suggest cautious credit extension with conditions. Ongoing monitoring of liquidity and equity trends is recommended to ensure the borrower’s repayment capability remains intact.

RJ BUSINESS SOLUTIONS LTD - Analysis Report

Company Number: 13100434

Analysis Date: 2025-07-20 13:22 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   RJ Business Solutions Ltd is a micro private limited company with a stable financial base but a declining net asset position over the last two years. The company exhibits modest working capital and positive net assets, indicating an ability to meet short-term liabilities. However, the reduction in net current assets and net assets between 2022 and 2023 suggests some weakening financial strength. Given the small size (one employee, minimal fixed assets) and limited financial history, credit facilities should be granted with conditions such as monitoring of updated accounts and cash flow reports to ensure continued repayment capacity.

2. Financial Strength:
   The balance sheet shows net assets decreased from £5,159 in 2022 to £3,585 in 2023, a 30% reduction, reflecting some erosion in equity. Fixed assets are minimal (£780 in 2023), consistent with a service-oriented business. Current assets declined from £9,094 to £7,022, and current liabilities decreased slightly from £4,976 to £4,204. Net current assets remain positive at £2,818, providing a cushion for short-term obligations. Share capital is nominal (£1). Overall, financial strength is adequate but trending downwards, requiring attention.

3. Cash Flow Assessment:
   Current assets primarily include cash and receivables, with net current assets positive, indicating reasonable liquidity. The company maintains working capital of £2,818 in 2023, sufficient to cover immediate liabilities. However, the decline from 2022’s £4,118 suggests tightening liquidity. The company’s micro status and single-employee operation imply low overheads, which helps conserve cash. Confirmation of cash flow stability through management accounts or bank statements would be prudent before increasing credit exposure.

4. Monitoring Points:

• Watch for continued decline in net assets and working capital in future accounts.
• Review timely filing of accounts and confirmation statements to avoid compliance risk.
• Monitor cash flow and debtor aging reports to detect any liquidity stress early.
• Assess any changes in business activity or significant reliance on a few clients.
• Track director conduct and ownership structure for any risk signals.