If your company is marked dormant at Companies House, it is unlikely to qualify for borrowing until it is genuinely trading again. We lend to support active businesses, so we need to see real trading activity behind an application.
What "dormant" means here
A dormant company has no significant accounting transactions during a period. With nothing flowing through the business, there is very little for us to base a lending decision on. The same is true of a company that has been incorporated but has not yet started to trade.
If your company has just become active
A company that has recently moved from dormant to actively trading can apply. The key is that there is genuine activity now. We look at recent money movement, the purpose of the funds, and your current Companies House details.
- Make sure your Companies House status reflects that you are trading.
- Be ready to show recent business bank activity.
- Have a clear reason for the borrowing.
Good to know
We do not take personal guarantees from directors or members. This is exempt business lending, outside the FCA consumer regime, so it is not covered by the Financial Ombudsman Service or FSCS. If you are turned down while dormant or only just active, it is reasonable to apply again once trading is established.
See also: Does my company's filing status at Companies House matter?, Applying as a newly incorporated company and Getting through the quiet trading slump after a busy season.