2 min read
Why mixing muddies the picture
A limited company's finances are legally separate from the director's. When personal spending runs through the business account (or vice versa), a lender cannot cleanly read company turnover — and it complicates tax and the director's loan account.
The fix
Run company income and costs through the business account and personal ones through your own. A few clean months makes the company's cash flow legible. This also just is good practice for a limited company.
Applying
Separate the accounts, let clean months build, then apply online.
Frequently asked questions
Does mixing personal and company money hurt my application?
Yes, indirectly — it obscures true company cash flow, which a lender needs to read. Separating the finances before applying resolves it.
How do I fix mixed finances before borrowing?
Run all company income and costs through the business account and keep personal spending separate. A few clean months makes the company's position legible to a lender.
Related reading
Does my company need a business bank account to borrow?
In practice, yes — a lender needs to see the company's trading through a business account to assess and to…
Read →
Does an overdrawn director's loan account affect borrowing?
An overdrawn director's loan account is a yellow flag, not a red one — lenders note it but assess the whole…
Read →Can I improve my eligibility before I apply?
Yes — a few weeks of preparation can meaningfully improve your eligibility and terms. Clean up filings, bank…
Read →Can I qualify if I have not filed my first accounts yet?
Yes — a company yet to file its first accounts can still borrow on bank statements and current trading. New…
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.