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Why a CIC fits the model
A community interest company is a limited company registered at Companies House with a regulated social purpose. Because it is a separate legal entity, it can carry borrowing in its own name, just like an ordinary company. That is why Credit Corp can assess it without a personal guarantee — the borrower is the CIC itself, not a director.
How a social enterprise is assessed
The test is the same as for any trading company: where does the money come from, how steady is it, and can the organisation comfortably afford repayments? A CIC funded by trading income reads much like a commercial business. One funded mainly by grants is harder to assess, because grant income can be one-off — see does my business need to be profitable to get a loan for how cash flow is weighed.
What the asset lock changes
A CIC's asset lock restricts how its assets and surpluses can be used, which a lender will note, but it does not prevent borrowing or repayment from trading income. If your social enterprise is a charity rather than a CIC, the structure differs and charity finance often runs on its own track — check eligibility directly in is my business eligible for Credit Corp.
Frequently asked questions
Does Credit Corp lend to charities as well as CICs?
A community interest company is a limited company and fits the standard model. A registered charity has a different legal structure and is assessed differently; charity finance often runs on its own track. Check eligibility directly for your specific structure.
Will our social purpose count against us?
No. A social enterprise is assessed on its trading and affordability like any company. The mission is not a negative — what matters is whether trading income can comfortably support the repayments.
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