Directors often carry assumptions from personal borrowing into business debt, and the two work differently. Knowing the differences prevents costly mistakes in difficulty.
The borrower is the company
A business loan is owed by the limited company, not the individual. On a Credicorp loan there is no director personal guarantee, so the difficulty and any consequences sit with the company, not the director's personal finances.
Different regime, different safety nets
Business lending sits outside the consumer-credit regime, so protections such as the Financial Ombudsman Service and FSCS do not apply. In their place sit clear contractual terms, a 100% cost cap and a responsible approach to forbearance.
Different duties
Running a struggling company carries legal duties towards creditors that have no personal-borrowing equivalent. Understanding them is part of handling business difficulty properly.
Understanding the regime helps you use the right tools and take the right advice.
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: How difficulty support differs for business borrowers versus consumers, Does a director's personal credit get touched by company arrears?, A director's legal duties when money is tight.