2 min read
The short answer
Who signs the loan when a company has multiple directors. The answer depends on your company's specific circumstances, but for most UK limited companies there are practical options available.
Understanding the key factors — what lenders look at, what it costs, and what the alternatives are — puts you in a stronger position to make the right decision for your business.
How it works in practice
For UK limited companies, the commercial lending market offers several options. Short-term loans (typically 7 to 84 days) suit one-off needs. Revolving credit facilities suit recurring or unpredictable needs. The right choice depends on the timing and purpose of the borrowing.
Credicorp lends to the company itself — not to the director personally. No personal guarantee is required, which means the director's personal assets are ring-fenced from the business borrowing.
Applications are assessed on the company's own trading performance, typically using bank statement data. Open banking connections can speed this up to minutes rather than days.
What to watch for
Compare the total cost of borrowing (total repayable amount) rather than just the headline rate. A loan with a lower daily rate but a longer term can end up costing more than a slightly higher rate over a shorter period.
Check whether there are arrangement fees, early repayment charges, or late payment fees. Reputable lenders are transparent about all costs upfront — if a lender is not, consider that a warning sign.
What this means for your company
Making an informed borrowing decision starts with understanding the cost, the alternatives, and the repayment timeline. The cheapest option is not always the best option — speed, flexibility and certainty of funding also matter when your business is on the line.
The practical step: get a quote, compare it against other options (including doing nothing), and make a decision based on the total cost and the impact on your business if you do not act.
Frequently asked questions
What happens if I cannot repay on time?
Contact your lender as early as possible. Responsible lenders will discuss options such as a short extension or revised repayment plan. Late fees may apply, and persistent non-payment can affect your company's credit rating.
What documents do I need to apply?
Typically your company details (registration number, trading address) and access to your business bank account via open banking. Some lenders may also ask for management accounts or ID verification.
Will applying affect my credit score?
Some lenders run a soft credit check at the quote stage, which does not appear on your credit file. A hard search typically happens only when you formally accept an offer. Ask the lender which type of search they use before applying.
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Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.