Many business lenders ask directors to personally guarantee a company's borrowing, which can put a director's own assets at risk if the company cannot repay. Credicorp does not do this. We lend to the company, and the obligation to repay sits with the company.
What this means for you
- You are not asked to sign a personal guarantee as a director
- The agreement is between Credicorp and your limited company or LLP
- We assess the business, not your personal finances as security
How it shapes our assessment
Because we are relying on the company rather than a director's personal backing, our decision focuses closely on how the business trades and whether it can comfortably repay. That is why connecting your business account by Open Banking, and keeping your Companies House record current, matters so much.
Directors' responsibilities
Not taking a personal guarantee does not change a director's normal duties to act properly on behalf of the company. The person applying still needs the authority to commit the business.
This is business finance for UK limited companies and LLPs, outside the consumer-credit regime, and not covered by the Financial Ombudsman Service or FSCS.
See also: Do all directors need to approve the application?, How do you decide whether to lend to my business?, What documents might you ask me to provide?.