2 min read
How limited liability protects you
A limited company is a separate legal person. Its debts are its own, so directors are not usually liable for company borrowing from their personal assets — that is the point of limited liability.
What a personal guarantee does
A personal guarantee waives that protection for a specific loan: if the company cannot pay, you must, from your own money. Read no personal guarantee loans. Credicorp takes no personal guarantee, so this protection stays intact.
What it means for you
Check for a personal guarantee before you sign anything.
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See indicative terms on business loans, or apply online in minutes.
Frequently asked questions
Does limited liability always protect me?
For ordinary company borrowing, yes — unless you have signed a personal guarantee, or in cases of wrongful trading or fraud. A personal guarantee is the usual way directors become personally exposed.
How do I stay protected?
Borrow where no personal guarantee is required, and read agreements carefully before signing. Credicorp lends to the company with no personal guarantee, keeping your assets out of it.
Related reading
Does a business loan need a personal guarantee?
It depends on the lender — many require a personal guarantee, but not all do. A personal guarantee makes you…
Read →
What happens if my company cannot repay a loan?
If the company cannot repay and there is no personal guarantee, the lender's recourse is to the business, not…
Read →
Can a limited company borrow without a personal guarantee?
Yes — a limited company can borrow without a personal guarantee. Credicorp lends to the company itself and…
Read →
Am I liable for company debts as a non-executive director?
A non-executive director has the same protection from company debts as any director — you are not personally…
Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.