Is it risky to fund my company with a personal loan or credit card?

Using a personal loan or credit card to fund the business makes you personally liable for a business risk — the opposite of borrowing through the company. Company borrowing without a personal guarantee keeps the risk where it belongs. A personal loan or card used for the business is your debt, secured on your name and credit — if the venture struggles, you still owe it personally. That undoes the whole point of the limited-company liability shield.

Is it risky to fund my company with a personal

2 min read

Personal borrowingYou are liable

Business riskOn you

Company loanRing-fenced

The risk you take on

A personal loan or card used for the business is your debt, secured on your name and credit — if the venture struggles, you still owe it personally. That undoes the whole point of the limited-company liability shield.

The safer route

Borrowing through the company, without a personal guarantee, keeps a business risk with the business. Compare the true cost — business finance is often cheaper than personal credit for this purpose.

What it means for you

Credicorp lends to your company, not to you personally, and takes no personal guarantee. A no-personal-guarantee company loan funds the business without turning a company risk into a personal one. See business loans or apply online.

Frequently asked questions

Should I put business costs on my personal credit card?

It shifts a business risk onto you personally. Company borrowing without a personal guarantee keeps the liability with the business, where it belongs.

Is a company loan cheaper than personal credit?

Often yes for business purposes, and it keeps the risk off your personal name. Compare the true cost before deciding.