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Why the company structure matters
Credit Corp's model rests on lending to a company that is legally distinct from its owner, then assessing that company on its own trading and cash flow. A sole trader has no separate legal entity — you and the business are one — so there is no company to carry the borrowing. This is also why no personal guarantee is taken: the borrower is the company itself.
What changes if you incorporate
If you register a limited company and move your trading into it, you create the separate entity that working-capital finance is built around. Lenders will still want to see real trading and bank activity, so a newly incorporated company usually needs a few months of history first — see can a new business get a business loan.
Where to check eligibility
If you already run a UK limited company, you can check whether it fits in is my business eligible for Credit Corp. Incorporating is a decision with tax and admin consequences, so it is worth taking advice rather than incorporating purely to borrow.
Frequently asked questions
Does Credit Corp lend to partnerships?
Credit Corp lends to UK limited companies. A traditional partnership, like a sole trader, is not a separate legal entity in the same way, so it does not fit the model. A limited liability partnership is different — check eligibility directly.
Could the director borrow personally instead?
No. Credit Corp does not lend to individuals at all — only to companies. See does Credit Corp lend to individuals.
Is it worth incorporating just to get finance?
Not on its own. Incorporation affects tax, accounts and liability, so the decision should rest on whether a company structure suits your business overall, with finance as one factor among several.
Related reading
Does Credit Corp lend to individuals or sole traders?
No. Credit Corp lends only to UK limited companies, not to individuals or sole traders. The borrower is always…
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Is my business eligible for Credit Corp finance?
You are likely eligible for Credit Corp finance if you are a UK-registered limited company that is actively…
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Can a new business get a business loan?
Yes, a new business can get a business loan — but it is harder, and the type of lender matters. Most…
Read →Can a sole trader get business finance?
Sole traders can borrow for business purposes, though the range of commercial lenders is narrower than for…
Read →Funding for UK limited companies
Credit Corp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.