Company Number: 14334572

Analysis Date: 2025-07-20 15:30 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Type On Data Ltd is an active private limited company operating in IT consultancy since September 2022. The company shows a positive turnaround in financial position in the latest year, moving from net liabilities of £1,967 to net assets of £669. However, the net asset base remains marginal and the company holds director loans exceeding £5,700, indicating reliance on related party funding. The business is still in early growth stages, with a very small workforce and modest turnover implied by current asset levels. Given these factors, credit approval should be conditional on continued monitoring of financial performance and liquidity, with limits placed on exposure relative to the company’s modest equity base and working capital.

2. Financial Strength:
   The balance sheet shows improving but still fragile financial health. Tangible fixed assets are minimal (£1,884) and the main asset components are current assets (£19,433), mainly cash (£13,733) and trade debtors (£5,700). Current liabilities at £14,937 are well covered by current assets, yielding positive net current assets of £4,496. Long-term liabilities consist solely of director loans (£5,710), reduced from prior year. Shareholders’ funds have turned positive at £669, indicating the company is emerging from initial losses. The modest equity base and reliance on director loans highlight limited financial cushioning to absorb shocks.

3. Cash Flow Assessment:
   Cash balances nearly doubled year-on-year from £6,007 to £13,733, reflecting improved cash generation or financing. The presence of trade debtors (£5,700) suggests some accounts receivable risk but is manageable given current liabilities coverage. Working capital is positive but tight, so liquidity is adequate for current operations but vulnerable to unexpected cash calls or delayed payments. The company’s small size and early stage suggest cash flow volatility is possible and requires close attention.

4. Monitoring Points:

• Track net asset progression and reduction in director loans to assess strengthening financial independence.
• Monitor cash flow trends and debtor aging to ensure sufficient liquidity for operational needs.
• Review profit and loss account when available to confirm sustainable profitability.
• Watch for changes in current liabilities, especially short-term creditor and tax obligations.
• Evaluate any material changes in business scale, staffing, or client base that impact credit risk.