2 min read
How it works
Money you put in sits as a credit on your director’s loan account. The company owes you. It is a common way to inject working capital without new equity.
The risks and safeguards
Without security you rank behind secured and preferential creditors if the company fails, so you may not get it back. Agree interest and repayment terms in writing, and consider whether external borrowing — which keeps your own cash safe — is the better route.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. An unsecured Credicorp loan lets you fund growth without putting your own money at the back of the queue. See business loans or apply online.
Frequently asked questions
Is a director loan to the company safe?
It is allowed, but you rank as an unsecured creditor unless you take security, so recovery is not guaranteed if the company fails. Document the terms.
Should I lend my own money or borrow?
External borrowing keeps your personal cash out of the company’s risk. A no-personal-guarantee loan funds growth without putting your money last in the queue.
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Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.