Can a company owned entirely by another company get a loan?

Yes — a wholly-owned subsidiary can borrow in its own name on its own cash flow. Being 100% owned by a parent does not remove the subsidiary's separate legal capacity. Credicorp assesses the subsidiary's trading, with group structure noted for context. A wholly-owned subsidiary is still a distinct company that can contract and borrow. Ownership sits above it; the subsidiary's own accounts and cash flow are what a lender assesses.

Can a company owned entirely by another company

2 min read

Yesown capacity

Own cash flowassessed directly

Group notedfor context

Full ownership does not remove capacity

A wholly-owned subsidiary is still a distinct company that can contract and borrow. Ownership sits above it; the subsidiary's own accounts and cash flow are what a lender assesses.

The parent as context

The lender will note how integrated the subsidiary is — whether it relies on the parent for customers or funding. A standalone, cash-generative subsidiary is straightforward. See the wider subsidiary rules for detail.

Applying

Have the subsidiary's accounts and statements ready and confirm the board's authority to borrow. Then apply online. No personal guarantee is taken.

Frequently asked questions

Does the parent need to guarantee the loan?

Not with Credicorp — no personal guarantee is taken, and the subsidiary is assessed on its own cash flow rather than a parent guarantee.

Can profits be moved to the parent affect my loan?

A lender looks at the subsidiary's cash flow before intra-group distributions. Regular upstreaming that leaves it thin will be factored into affordability.