Plenty of skilled people in construction, trades, transport and other sectors operate as sole traders. We are often asked why Credicorp cannot lend to them. The short answer is that we are an exempt business lender that lends only to UK limited companies and limited liability partnerships, for business purposes.
What the distinction means
A sole trader and their business are the same legal person. A limited company or LLP is a separate legal entity. Credicorp lends to that entity, the company itself, rather than to any individual. This keeps our lending firmly in the business-to-business space and outside the FCA consumer-credit regime that governs lending to individuals.
Why this matters to you
- The borrowing sits with the company, not with you personally
- We do not take personal guarantees from directors
- Because it is not consumer credit, the Financial Ombudsman Service and FSCS do not apply
If you are currently a sole trader
We cannot lend to you in that form. Some sole traders choose to incorporate as a limited company for a range of business reasons, after which they may become eligible. Whether incorporating is right for you is a decision for you and your accountant; it is not something we advise on.
Already incorporated?
If your trades or construction business already runs as a limited company or LLP, you may be eligible. Our team can talk you through Credicorp Flex and Credicorp Slice and how each works.
See also: Why we only lend to limited companies and LLPs, Does Credicorp lend to sole traders or individuals?, Funding for UK construction companies.