TUITION WITH QASIM LTD

Executive Summary

Tuition With Qasim Ltd is a start-up micro-entity with limited trading history and a negative working capital position, reflecting early-stage financial fragility. While the sole director shows commitment, the company's ability to service debt is currently constrained, warranting conditional credit approval subject to close monitoring of liquidity and financial performance improvements.

TUITION WITH QASIM LTD - Analysis Report

Company Number: 14705217

Analysis Date: 2025-07-29 19:51 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Tuition With Qasim Ltd is a newly incorporated micro-entity active in the educational support services sector. With only its first financial year completed, the company shows limited financial history and a weak short-term liquidity position evidenced by a net current liability of £4,032. The director is the sole significant controller, which centralizes management but also concentrates risk. Given the lack of trading history and current working capital deficit, credit facilities should be extended cautiously with conditions such as regular monitoring and possibly collateral or personal guarantees.

2. Financial Strength:
   The balance sheet shows modest fixed assets (£5,764) and minimal current assets (£1,005) offset by current liabilities of £5,037, resulting in net current liabilities. Total net assets and shareholders’ funds stand at £1,732, reflecting initial capital injection rather than accumulated profits. The company is in early stages without retained earnings or reserves, indicating limited financial cushion against adverse events. The micro-entity status and exemption from audit limit transparency and depth of financial information.

3. Cash Flow Assessment:
   Current liabilities exceed current assets by over four thousand pounds, a negative working capital position that raises concerns about liquidity management and the ability to meet short-term obligations. No information on cash flow from operations or profit and loss is provided, limiting assessment of ongoing cash generation. The company must improve cash inflows or reduce liabilities to stabilize liquidity. Close scrutiny of cash flow forecasts and debtor collection cycles is recommended for ongoing credit assessment.

4. Monitoring Points:

• Quarterly updates on cash flow and working capital position to track improvements or deterioration.
• Timely filing of all statutory accounts and confirmation statements to ensure compliance and transparency.
• Any changes in ownership or director appointments that may affect company control or risk profile.
• Evidence of revenue growth and profitability trends in subsequent accounting periods.
• Management of creditor terms and capital structure adjustments to improve liquidity.