Assets, Liabilities and Equity
What You Balance Sheet Tells You About Business Health.
Contact Navigate Commercial Finance Today!
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Assets, Liabilities and Equity
What You Balance Sheet Tells You About Business Health. Contact Navigate Commercial Finance Today!
GET A FUNDING QUOTE
Assessing the Financial Health of Navigate Fabrics Ltd.
Assets
The company has a solid asset base, with a healthy balance of £350,000in current assets (cash and accounts receivable) and £735,000 in fixed assets (property and machinery). This combination ensures that Navigate Fabrics Ltd. has enough liquidity to cover immediate expenses while supporting long term future income generation.
Liabilities
Navigate Fabrics Ltd. has strategically taken on liabilities to enable growth. The £40,000 short-term loan for marketing the new sustainable fabric line is expected to drive significant revenue, making it a valuable investment. The £250,000 mortgage supports long-term asset ownership, whilst spreading the cost over time to maintain stability. The company’s liabilities are well-managed, demonstrating a positive outlook on using debt as a growth tool.
Equity (Capital and Reserves)
The company’s equity is robust, with £300,000 in share capital and £495,0001in retained earnings. This suggests that Navigate Fabrics Ltd. is generating profits and effectively reinvesting them to support expansion. However, it’s worth noting that raising additional equity would dilute existing ownership, making debt financing an attractive option for business owners looking to retain control while driving growth.
The Navigate Commercial Finance Advantage
With a combined 100+ years working in business and finance, Navigate understands the market and has forged excellent relationships with key decision-makers at a wide range of pragmatic lenders giving us the best chance to secure your finance. We will take the stress out of finding the right finance solution with the most appropriate funding partner allowing you to focus on running your business – you have enough going on!
…plans. It is clear from working with Paul and his team that they’re experienced in their field. They were a pleasure to work with and I’d have no hesitation in using Navigate should we require business funding in the future.”
… he has never failed to deliver. He makes sure he fully understands the needs of the business before making his recommendations and will always think outside the box when looking for solutions. Paul knows the commercial funding market very well and I would highly recommend Navigate to any business in need of raising working capital finance”
Andrew Jones, Cooper Parry
… the commercial finance market and each lenders credit appetite or sweet spot.
This results in the most appropriate client-focussed solution but equally allows the lender to make an informed decision at an early stage so they can support a transaction through to completion providing peace of mind all round.”
Martin Baker, Close Brothers Invoice Finance
It has already had a vast impact on our day-to-day business activities”
Dominic Delfino, Famiglia Castagnetta
As a lender this enables me to quickly get a clear grasp of what we can deliver, whilst saving the client time rather than dealing with many funders who may not be able to deliver. Paul knows the commercial funding market very well and I would highly recommend Navigate to any business in need of raising working capital finance”
Kully Bargota, Bibby Financial Services
We sat down with Paul who listened to our plans, kicked ideas around, and then we agreed on a plan, including a four-week timeline. With constant engagement, we met the deadline and now have the finance required to support our exciting plans – great team work throughout!”
Chris Smith, CAPS Systems Ltd
and would like to extend a special thanks to Adam for his exceptional assistance throughout the process. They made it incredibly easy and straightforward. Adam and the Navigate team have been a huge part of our success, helping us secure funding for the second time, which enabled us to open our 7th and 8th gyms. The process has been seamless, and I look forward to working with them again in the future. Thank you again”
Jack Gibson, Fitness Worx
to carefully guide us through the entire process from initial scope to completion finding us the right facility to fit our requirements. It has been absolutely invaluable to our business”
John Slaughter, DS Flooring Solutions Ltd
the client’s needs, making them feel that they are in the right hands. He provides good concise information and background to enable a swift decision to lend. More Adam’s please!”
Angie Preece, BCRS Business Loans
for our financial operations. Paul and his team took the time to understand our business inside out, helping us establish international and domestic current accounts, secure finance, and implement debt insurance, tailored to fit our needs perfectly. This winter, we faced a significant challenge: a surge in work from a key customer put pressure on our concentration limits at a critical time. Thanks to Navigate’s swift and practical approach, we secured the funding we needed within days, ensuring we could meet every commitment. They’ve been consistently available to answer follow-up questions, providing clear, practical advice every step of the way. The combination of expertise and genuine care is rare to find. We wouldn’t hesitate to recommend them.“
Sarah Summerfield, Agile Supply Chain Management
Adam took time to understand our business, our goals and aspirations, and paired us with the perfect Finance Partner, a responsible lender who is a wonderful fit for our organisation. Raising finance for our business was a very challenging process as we did not fit the typical “tick box” criteria required by traditional lenders. Furthermore, we required a lender who would judge our performance based on forecast data, not just historical data. Adam did not let this deter him in his search, he persisted, worked hard for us and was determined in the face of adversity until the deal was signed. Navigate Commercial Finance are highly recommended. A motivated team who provide a fantastic service and offer value for money in terms of fees.Thank you so much for playing a part in helping our business flourish, the future looks very bright thanks to your support.This winter, we faced a significant challenge: a surge in work from a key customer put pressure on our concentration limits at a critical time. Thanks to Navigate’s swift and practical approach, we secured the funding we needed within days, ensuring we could meet every commitment. They’ve been consistently available to answer follow-up questions, providing clear, practical advice every step of the way.”
Sarah Roberts, Antlers CR
embarking on any form of lending, and I was well outside my comfort zone, but the funding was vital to support the growth of my business. To say Paul made the process “easy” wouldn’t be entirely accurate, these types of deals never are, however from our very first conversation about the acquisition and the level of finance required, Paul guided me through every step with clarity and reassurance. As a complete novice, I was never made to feel that any question was too small or too obvious, and Paul was always on hand to explain things patiently and thoroughly.
Paul’s expertise and proactive approach played a key role in ensuring the deal ran smoothly, and we were delighted to complete just before Christmas. Throughout the process, I genuinely felt that Navigate were there to support my business growth, not just to complete a transaction. I wouldn’t hesitate to recommend Paul and Navigate to any business considering invoice finance.”
Kay Venables, Fishers
and they have consistently exceeded expectations. Over the years, they have helped numerous clients secure the right commercial funding solutions, always with a tailored approach that puts the client’s interests first. What truly sets Navigate apart is their consultative style. They don’t sell—they listen, understand, and advise. Their team takes the time to fully grasp each client’s unique circumstances before recommending the most suitable options, which gives us complete confidence when making referrals. Their customer service is impeccable, combining professionalism with a genuinely personal touch. Queries are handled promptly, communication is clear throughout the process, and nothing ever feels like too much trouble. Above all, their knowledge of the invoice finance and wider commercial finance market is second to none. This expertise, paired with their commitment to finding the best outcomes, makes Navigate an invaluable partner for us and our clients alike.
We wouldn’t hesitate to recommend them.”
Daniel Montgomery, MDCA Limited
Assets, Liabilities, and Equity
What Your Balance Sheet Tells You About Business Health
Navigate Fabrics Ltd. is in a strong financial position. Its balanced approach to managing assets and liabilities, combined with a positive equity base, shows it is well-prepared to leverage debt for strategic growth. By using debt as a tool to accelerate the launch of its new sustainable fabrics line, the company is setting itself up for increased market share and future profitability. With effective debt management and reinvestment of profits, Navigate Fabrics Ltd. is poised for sustainable expansion.
At Navigate Commercial Finance, we specialise in helping businesses like Navigate Fabrics Ltd. harness the benefits of debt financing to drive growth and achieve their strategic goals. Whether you need help managing cash flow, exploring funding options, looking to acquire or planning for organic growth, our team is here to support you every step of the way. Contact us today to see how we can help you navigate the complexities of commercial finance with confidence.
Assets
Assets
Assets represent everything your business owns that has value and can be used to generate future income. They are typically divided into three categories: Fixed assets Current assets and Intangible.
Fixed Assets
Are tangible longer-term investments like property, plant and machinery, vehicles that can take time to liquidate but they are vital for driving the business forward over the long term. A strong base of fixed assets can be a sign that the business is well-positioned for sustained growth.
Intangible Assets
These are non-physical assets that have an identifiable value and lifespan such as trademarks and patents. Whilst these assets may have a value in a “sale” situation, when raising finance, most lenders discount them from the balance sheet.
Current Assets
These are assets that can be converted into cash within a year, such as cash in the bank, accounts receivable (money owed to you by customers), and inventory (stock) . Keeping an eye on your current assets is crucial for managing cash flow and ensuring your business can meet its short-term obligations. A healthy balance of current assets indicates that your business is in a good position to cover its immediate expenses and seize short-term opportunities.
Liabilities
Liabilities are the financial obligations of your business. They are also split into two categories: current liabilities (creditors <1 year) and non-current liabilities (creditors >1 year). When managed well, liabilities can be a powerful tool to unlock growth.
These are short-term debts that need to be paid within a year, such as trade creditors (money you owe to suppliers), short-term loans, and accrued expenses (expenses that have been incurred but not yet paid). Managing current liabilities effectively allows businesses to leverage their position and keep cash flowing smoothly.
These include long-term financial commitments, such as bank loans, mortgages, and bonds that are payable over a period longer than one year. Long-term loans, can provide the capital needed for major investments or expansion plans, enabling businesses to accelerate growth and achieve strategic objectives.
Equity
Equity
Equity represents the owners’ share of the business after all liabilities are deducted from the assets. It includes share capital, retained earnings, and sometimes additional reserves.
Share Capital
This is the money that has been invested in the business by the shareholders. While raising equity can provide a substantial cash injection, it also dilutes the ownership of existing shareholders. This means that business owners have to give up a portion of control over their company, which might not be ideal for those looking to maintain decision-making power.
Retained Earnings
These are the profits that have been kept within the business rather than distributed as dividends. Retained earnings can be used to reinvest in the business, fund expansion, or pay down debt. Growth in retained earnings over time is a good indicator of a company’s profitability and effective management.
Funding Solutions
