Can a company limited by guarantee get a business loan?

Yes — a company limited by guarantee can borrow, provided it trades and generates cash flow. These companies have members and guarantors rather than shareholders, but they are still limited companies at law. Credicorp assesses the trading activity, not the share structure. A company limited by guarantee has no share capital. Instead, members promise a nominal amount (often just £1) if the company winds up. Many clubs, associations and social enterprises use this structure. It is still a registered limited company, so it can hold assets, sign contracts and take on debt in its own name.

Can a company limited by guarantee get a

2 min read

YesEligible if trading

Membersnot shareholders

No PGcompany-only

How a guarantee company differs

A company limited by guarantee has no share capital. Instead, members promise a nominal amount (often just £1) if the company winds up. Many clubs, associations and social enterprises use this structure. It is still a registered limited company, so it can hold assets, sign contracts and take on debt in its own name.

What lenders look at

Because there are no shareholders to draw dividends, lenders focus on trading income, reserves and the underwriting fundamentals: does the entity generate enough surplus to service the facility? A guarantee company with steady fee or trading income is treated much like any other Ltd.

Borrowing with Credicorp

Credicorp lends to the company on its cash flow, with no personal guarantee from members. Check whether a CIC or charity can borrow if your entity has that status too, then business loans or apply online.

Frequently asked questions

Do members give a personal guarantee?

No. Credicorp takes no personal guarantee from members or directors. The guarantee in 'limited by guarantee' is only the nominal wind-up amount in the articles, not a lending guarantee.

Can a members' club borrow?

If it is incorporated as a company limited by guarantee and generates trading or subscription income the lender can assess, yes. An unincorporated association usually cannot borrow in its own name.