Can an LLP get a business loan?

2 min read

YesLLPs are a separate legal entity

Like a LtdAssessed on trading and cash flow

MembersWhere the difference lies

Why an LLP qualifies

An LLP sits between a traditional partnership and a limited company. Crucially, it has its own legal personality, so it can borrow in the LLP's name — which an ordinary partnership can't, because that's not a separate entity. It also files at Companies House, giving lenders the public record they rely on. This is what makes an LLP a viable borrower where a general partnership isn't.

How assessment differs

The core test is the same as for a company: the LLP's revenue, bank activity and ability to afford repayments. The differences are structural — an LLP is owned by members rather than shareholders and is taxed differently, with profits taxed on the members. A lender will look at the LLP's trading position and may consider the standing of its members. The wider checklist applies — see what lenders check on a business loan application.

Checking your eligibility

If you trade through an LLP, the practical question is whether your specific structure and trading fit a given lender's model. The clearest route is to check directly — see is my business eligible for Credicorp. Note that a traditional partnership or sole trader is treated differently; the sole trader answer explains why a separate legal entity matters.

Frequently asked questions

Is an LLP treated the same as a limited company for lending?

Broadly, yes — both are separate legal entities assessed on their trading and cash flow. The differences are in ownership (members versus shareholders) and tax treatment, rather than in whether the entity can borrow at all.

Do LLP members give personal guarantees?

It depends on the lender. Some require guarantees from members; Credicorp's model centres on lending to the entity on its trading. Always confirm whether a personal guarantee is required before proceeding.

Can an ordinary partnership borrow the same way?

Not in the same way. A traditional partnership isn't a separate legal entity, so it can't hold the debt itself — much like a sole trader. The limited liability structure is what makes an LLP different.