Yes. A community interest company (CIC) that is structured as a private company limited by shares or by guarantee is a UK limited company for our purposes, and is eligible to apply. We assess trading CICs on the same financial criteria as any other limited company applicant: trading history, cashflow, and ability to service the debt from the company's own income.
How CICs differ from standard limited companies in our assessment
CICs are subject to an asset-lock and dividend cap, which means distributing profits is restricted. We take this into account when looking at how the company retains working capital and how repayments will be funded. Revenue-generating CICs — those with trading income from contracts, services, or grants with unrestricted use — typically present the clearest repayment picture.
Grant income and restricted funds
If a significant portion of the CIC's income is restricted grant funding that cannot be applied to commercial loan repayments, this will affect the usable cashflow we can assess. We look at unrestricted or trading income as the primary repayment source. Provide management accounts that clearly separate restricted and unrestricted income to avoid delays in decisioning.
Which products work well for a CIC
- Credicorp Slice — useful for spreading a specific supplier or contractor invoice without tying up restricted reserves.
- Business Loan — suitable where the CIC has a clear, project-linked purpose and foreseeable income to cover instalments.
- Credicorp Flex — works well for CICs with seasonal or contract-driven cashflow that needs a revolving buffer.
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 a company limited by guarantee apply for business finance?, Can a dormant company restarting trading get a business loan?.