Payment difficulty

Does a director's personal credit get touched by company arrears?

A common and understandable worry is that struggling with a company loan will damage the director's personal finances. On a Credicorp Business Loan, the design protects against exactly that.

The debt is the company's

The loan is to the limited company, and we take no personal guarantee from its director. So the borrowing is not a personal debt, and company arrears are not a personal arrears record for the director.

What could still involve a director

A director's personal position can be affected in narrow circumstances defined by company and insolvency law — for example, if they had given a personal guarantee to some other lender, or in cases of wrongful conduct. None of that flows from our loan, which carries no personal guarantee.

Look after yourself too

Even when personal liability is not in play, the stress is real. Look after your own wellbeing while you deal with the company's finances, and use the free support available.

Read how arrears interact with the company and directors below.

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: Will missing a payment affect the directors personally?, Will Credicorp chase me personally if my company cannot repay?, Looking after yourself while handling business money stress.

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