The loan is to your company, so the company must have the authority to take it on. Whether every director needs to be involved depends on how your business makes decisions.
Authority to borrow
Most companies grant directors authority to enter commercial contracts on the company's behalf. Your articles of association, shareholders' agreement or board resolutions may set out who can commit the company to finance. It is your responsibility to make sure the person applying has that authority.
When co-directors should be involved
- If your governance requires a board decision for borrowing
- If more than one director must authorise commitments above a certain level
- If you simply want shared visibility and accountability
Our part
We may ask for confirmation that the person applying is authorised, and we verify directors against Companies House. We do not require every director to personally guarantee the loan, because we take no personal guarantees at all. The obligation sits with the company.
If you are a sole director, you can apply and accept on the company's behalf. If you share control, agree internally who will lead before you start, so the application runs smoothly. As business finance outside the consumer-credit regime, this is not covered by the Financial Ombudsman Service or FSCS.
For related authority checks, read whether a co-director can apply with you, companies with multiple directors or members and why we check Companies House.
See also: Can a newly formed company apply?, Can a charity or charitable company apply?, Can a CIC or community interest company apply?.