A newly formed holding company can apply, but the assessment will focus on the underlying trading activity within the group rather than the holding entity alone. The key question is whether there is a genuine, active business generating revenue — regardless of which legal entity sits at the top.
What we look at in a holding structure
If your holding company was incorporated recently to sit above one or more established operating subsidiaries, we will want to understand the relationship between entities: how cash flows between them, who holds the trading contracts, and which company the facility will ultimately benefit. In many cases, the appropriate applicant is the operating subsidiary rather than the holding company.
When the holding company is the right applicant
- The holding company itself trades or has trading contracts in its own name.
- It has its own bank account with regular, documented receipts.
- Intercompany loans or dividends flowing from subsidiaries are clearly documented and consistent.
Preparing your application
Provide a brief group structure chart showing which entities exist and their relationships. Include bank statements and accounts for both the holding company and the relevant operating subsidiary if possible. If the holding company is newly incorporated but the operating business beneath it has years of history, that trading history is relevant and we will want to see it. Being upfront about the structure from the outset saves time for everyone.
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: Can my company apply while it is mid-restructure?, What strengthens a Credicorp application?, Can I apply if my company has a short trading history?