Can a sole trader get a Credicorp loan?

2 min read

Ltd onlyLimited companies, not sole traders

No PGLends to the company, not the person

IncorporateThe route to eligibility

Why the company structure matters

Credicorp's model rests on lending to a company that is legally distinct from its owner, then assessing that company on its own trading and cash flow. A sole trader has no separate legal entity — you and the business are one — so there is no company to carry the borrowing. This is also why no personal guarantee is taken: the borrower is the company itself.

What changes if you incorporate

If you register a limited company and move your trading into it, you create the separate entity that working-capital finance is built around. Lenders will still want to see real trading and bank activity, so a newly incorporated company usually needs a few months of history first — see can a new business get a business loan.

Where to check eligibility

If you already run a UK limited company, you can check whether it fits in is my business eligible for Credicorp. Incorporating is a decision with tax and admin consequences, so it is worth taking advice rather than incorporating purely to borrow.

Frequently asked questions

Does Credicorp lend to partnerships?

Credicorp lends to UK limited companies. A traditional partnership, like a sole trader, is not a separate legal entity in the same way, so it does not fit the model. A limited liability partnership is different — check eligibility directly.

Could the director borrow personally instead?

No. Credicorp does not lend to individuals at all — only to companies. See does Credicorp lend to individuals.

Is it worth incorporating just to get finance?

Not on its own. Incorporation affects tax, accounts and liability, so the decision should rest on whether a company structure suits your business overall, with finance as one factor among several.