Credit Assessment: MAC FIN CONSULTING LIMITED (07782966)

1. Credit Opinion: DECLINE (for unsecured facilities)

This is a micro-entity insurance broking consultancy with a single director/employee, filing unaudited FRS 105 accounts. The FY2026 balance sheet shows a working capital deficit of £12,505, net assets of just £569, and a 99.5% liabilities-to-assets ratio. Equity has collapsed ~99.6% from its 2022 peak of £133,313. There is no loss-absorption capacity and no filed earnings data to evidence debt service capability. Unsecured lending is not supportable on these numbers.

A conditional pathway could exist only for a small, tightly structured facility (e.g., modest overdraft or short-term working capital line) secured by a personal guarantee from Xxxxxx Xxxxxxxxname shown to subscribers, a debenture/charge over available assets, and a cap informed by management accounts. The director's personal net worth would need to be verified, as the corporate balance sheet provides no cushion whatsoever.

2. Financial Strength

Balance sheet health is critically thin:

• Equity volatility signals a lifestyle extraction pattern. Net assets have swung from £4,188 (2020) to £133,313 (2022) to £569 (2026). The recurring near-zero year-end positions (2020, 2024, 2026) strongly suggest the owner strips surplus value annually via drawings/dividends. Legitimate for the owner — but it leaves creditors with no retained buffer.
• Gearing is effectively total. Liabilities finance 99.5% of the asset base. Fixed assets are only £13,074, so there is no meaningful security pool in the company.
• Disclosure opacity is itself a credit negative. Micro-entity accounts provide no P&L, no cash flow statement, and no debtor/creditor breakdown. We cannot see turnover, margins, or the composition of the £103,661 short-term creditors (likely a mix of HMRC liabilities, trade creditors, accruals, and possibly director account balances).
• Positives: 14-year trading history, clean filing record (accounts and confirmation statement current), no insolvency history, and the £5,324 long-term creditor from FY2025 was cleared.

3. Cash Flow Assessment

• Current ratio has fallen below 1.0 — 0.88 at FY2026 (91,156 / 103,661), down from 1.21. The company cannot meet obligations falling due within one year from liquid assets.
• The FY2026 movement is concerning. Current assets fell £50,487 while short-term creditors fell only £13,120. Net current assets swung negative by £37,367, and net worth dropped £29,724. The business consumed roughly £30k of value during the year — either a trading loss or drawings exceeding profit. We cannot distinguish which without management accounts.
• Client money risk. As an insurance broker (SIC 66220), current assets may include client premiums or trust balances. If so, true business liquidity is even weaker than the headline figures suggest. FCA client money segregation status should be verified before any exposure.
• No demonstrated repayment source. With no earnings disclosure, there is no evidence of cash generation available to service new debt.

4. Monitoring Points

If any relationship proceeds, or for future reassessment:

1. Net current assets — return to positive working capital is the first recovery signal.
2. Composition of current assets — cash vs. trade debtors vs. client money; request management accounts and bank statements.
3. Aged creditors — confirm no HMRC arrears (VAT/PAYE/Corporation Tax typically dominate a broker's short-term creditors) and whether director loan balances are included.
4. FY2027 accounts — does equity rebuild or turn negative? Negative equity would trigger formal insolvency-risk review.
5. Drawing policy — willingness to retain a capital buffer is essential for any facility to be sustainable.
6. Key person continuity — sole director/employee; any facility must factor total cessation risk if Xxxxxx Xxxxxxxxname shown to subscribers is incapacitated.
7. FCA regulatory standing — confirm authorisation and any client money breaches.

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