How do I apply for a loan if I have more than

2 min read

Right entityThe one that repays

StructureExplain it

ConnectedCompanies assessed

GuaranteeMay cross entities

Choosing the borrowing entity

Where you control several companies, the loan should sit with the entity that will actually use the money and generate the repayments. Borrowing in the wrong company — say a dormant holding company with no trading — confuses the affordability picture and complicates repayment. Match the borrower to the beneficiary of the funds.

How lenders view a group

Lenders assess the borrowing company but also look at connected companies, inter-company loans and any guarantees between them, as part of due diligence. A tangled structure or inter-company debt can raise questions, so be ready to explain how the companies relate and where the money flows. A cross-company guarantee is sometimes required.

Presenting it cleanly

Have clear accounts for the borrowing entity, a simple explanation of the group, and figures that reconcile across the companies. If control or approval spans entities, sort the authority in each. Confirm the borrowing company can service the loan on the affordability calculator, then enquire for a business loan.

Frequently asked questions

Which of my companies should take the loan?

The one that will use the funds and produce the cash to repay them. Borrowing in a non-trading holding company or the wrong entity muddies affordability and repayment — align the borrower with where the money works.

Will lenders look at my other companies?

Usually yes, at least at connected entities, inter-company loans and any cross-guarantees. A clean, explainable structure helps; unexplained inter-company debt or a complex web invites questions.