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How a guarantee company differs
A company limited by guarantee has no share capital. Instead, members promise a nominal amount (often just £1) if the company winds up. Many clubs, associations and social enterprises use this structure. It is still a registered limited company, so it can hold assets, sign contracts and take on debt in its own name.
What lenders look at
Because there are no shareholders to draw dividends, lenders focus on trading income, reserves and the underwriting fundamentals: does the entity generate enough surplus to service the facility? A guarantee company with steady fee or trading income is treated much like any other Ltd.
Borrowing with Credicorp
Credicorp lends to the company on its cash flow, with no personal guarantee from members. Check whether a CIC or charity can borrow if your entity has that status too, then business loans or apply online.
Frequently asked questions
Do members give a personal guarantee?
No. Credicorp takes no personal guarantee from members or directors. The guarantee in 'limited by guarantee' is only the nominal wind-up amount in the articles, not a lending guarantee.
Can a members' club borrow?
If it is incorporated as a company limited by guarantee and generates trading or subscription income the lender can assess, yes. An unincorporated association usually cannot borrow in its own name.
Related reading
Can a CIC or social enterprise get a business loan?
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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…
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Business loans with no personal guarantee
A no-personal-guarantee loan lets a limited company borrow without a director signing away their own assets…
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Can a personal guarantee be limited to a fixed amount?
A personal guarantee can be capped at a fixed sum, but check whether the cap includes interest, default…
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.