2 min read
The separation of company and director
A limited company is a distinct legal person. With no personal guarantee, the company's borrowing does not lean on the director's personal position, so ordinary personal debt — a mortgage, a car loan, some credit-card balance — does not gate the company loan.
Where a personal issue does matter
Bankruptcy makes someone unable to act as a director; a disqualification bars them outright. Those affect the company's leadership and so are relevant. A poor personal score alone is not decisive when the company stands on its own cash flow.
Applying
Focus the application on the company's trading. apply online — the director's personal assets stay out of it.
Frequently asked questions
Will a director's credit-card debt stop the company borrowing?
No, for a no-personal-guarantee lender assessing the company. Ordinary personal debt is separate from the company's cash-flow-based application.
What personal issues actually matter?
Bankruptcy and director disqualification are relevant because they affect who can run the company. An average personal credit score is not decisive.
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