Company Number: NI701049

Analysis Date: 2025-07-29 18:13 UTC

1. Credit Opinion: DECLINE
   YUHAN TRADING LIMITED is a newly incorporated micro-entity with minimal operating history and very limited equity (£80). The financials show a fragile balance sheet with total net assets of only £80 and significant liabilities including £15,000 creditors due after one year and provisions. The company has a negative net current liability position reported as positive (£12,000) due to adjustments but overall liquidity is questionable. Given the lack of trading history, minimal equity, and relatively high liabilities, the company currently lacks sufficient financial strength and track record to reliably service debt or credit facilities. Approval for credit is not recommended at this early stage without substantial financial improvement or additional security.

2. Financial Strength:
   The balance sheet indicates very weak financial strength. Fixed assets stand at £11,000, and current assets at £14,000, with current liabilities of £6,000, producing net current assets of £12,000 (including prepayments and accruals). However, the company has £15,000 of non-current creditors and provisions of £3,000, as well as accruals of £5,000, leaving net assets of only £80. The negligible shareholders’ funds highlight the absence of retained earnings or capital injection beyond the initial £80 share capital. This thin equity base and the presence of long-term liabilities signal a precarious financial position.

3. Cash Flow Assessment:
   The company appears to have limited liquidity and working capital, with current assets just exceeding current liabilities. The average number of employees is one, indicating a very small operation, which may limit cash outflows but also restricts income generation capacity. The presence of accruals and provisions suggests anticipated expenses that may strain cash resources. No detailed cash flow statement is provided, but the micro-entity status and minimal financial resources imply constrained cash flow available to meet obligations as they fall due.

4. Monitoring Points:

• Monitor future annual accounts for growth in equity and profitability to build financial resilience.
• Track changes in working capital and liquidity ratios to ensure the company can meet short-term liabilities.
• Observe any increase in borrowings or commitments that could stress the balance sheet further.
• Watch director changes or related party transactions that might impact governance and financial stewardship.
• Review payment history on any trade credit or loans granted, if applicable.