Can a limited company get a business loan?

2 min read

YesLtd companies are the core borrower

CompanyAssessed on its own trading

No PGDirector's assets stay separate

Why a limited company fits

A limited company is a separate legal person from the people who own and run it, which is precisely what lets it hold debt in its own name. Credicorp's model is built around this: it lends to the company and assesses that company on its trading, then takes no personal guarantee. A sole trader can't fit the same way — see can a sole trader get a Credicorp loan.

What's actually assessed

The decision rests on the company's position — revenue through the business bank account, the pattern of cash flow, and whether trading can comfortably afford repayments. A short trading history and a UK business bank account are usually the baseline. The fuller checklist is in what lenders check on a business loan application, and you can sense-check affordability with the affordability calculator.

Whether it's right for you

Being eligible isn't the same as needing finance. Match the borrowing to a clear purpose — a one-off cost suits a term loan, recurring cash-flow swings suit a facility like Credicorp Flex. If you run a UK limited company, you can check the specifics in is my business eligible for Credicorp.

Frequently asked questions

Does my limited company need to be profitable to borrow?

Not strictly — affordability is judged on cash flow, and a growing company can borrow before it's heavily profitable. Steady, healthy trading through the business account matters more than a single profit figure on the accounts.

How long does my company need to have traded?

Lenders usually want a minimum trading history, often a matter of months rather than years. A newly incorporated company typically needs to build some bank activity first — see can a new business get a business loan.

Is the loan secured against the company's assets?

Not necessarily. Credicorp offers unsecured, company-only lending without a personal guarantee. Whether any security is taken depends on the facility — see do I need collateral for a business loan.