2 min read
Full ownership does not remove capacity
A wholly-owned subsidiary is still a distinct company that can contract and borrow. Ownership sits above it; the subsidiary's own accounts and cash flow are what a lender assesses.
The parent as context
The lender will note how integrated the subsidiary is — whether it relies on the parent for customers or funding. A standalone, cash-generative subsidiary is straightforward. See the wider subsidiary rules for detail.
Applying
Have the subsidiary's accounts and statements ready and confirm the board's authority to borrow. Then apply online. No personal guarantee is taken.
Frequently asked questions
Does the parent need to guarantee the loan?
Not with Credicorp — no personal guarantee is taken, and the subsidiary is assessed on its own cash flow rather than a parent guarantee.
Can profits be moved to the parent affect my loan?
A lender looks at the subsidiary's cash flow before intra-group distributions. Regular upstreaming that leaves it thin will be factored into affordability.
Related reading
Can a subsidiary company borrow in its own name?
Yes — a subsidiary is a separate legal entity and can borrow in its own name. Its parent does not…
Read →
Can a holding company get a business loan?
A pure holding company with no trading income is hard to fund on its own — but the trading subsidiary usually…
Read →Does my company structure affect borrowing?
Yes — your structure affects both how finance is assessed and how exposed you are personally, with a limited…
Read →Can I get a business loan to buy another business?
Yes — a limited company can borrow to acquire another business, and this is often called acquisition finance…
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.