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Binding the company vs binding you
Directors act as agents of the company. One director with authority under the articles and bank mandate can commit the company to borrowing. That is a company obligation. It does not make you personally liable — a personal guarantee requires your own signature.
Protecting yourself
Set a two-signature rule for borrowing in your articles or a shareholders’ agreement. With a no-personal-guarantee facility the personal-liability question falls away — only the company can be pursued.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. A no-PG loan means a co-director cannot expose your personal assets even if they arrange the borrowing. See business loans or apply online.
Frequently asked questions
Can one director take a loan the others did not agree to?
If they have authority under the articles and mandate, they can bind the company. You can restrict this with a dual-authorisation rule. You are not personally liable unless you sign a guarantee yourself.
Am I liable for a loan I did not sign?
Not personally, unless you gave your own personal guarantee. The company may be liable, but that is separate from your personal assets.
Related reading
Can two directors both be liable for a company loan?
With no personal guarantee, no director is personally liable — the company is. Where a personal guarantee is…
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Am I personally liable for a company loan?
Generally no — limited liability means the company, not you personally, owes the debt, unless you have signed…
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Can a lender register a charge without a personal guarantee?
Yes — a charge secures the loan against company assets, while a personal guarantee secures it against you…
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Am I liable for company debts as a non-executive director?
A non-executive director has the same protection from company debts as any director — you are not personally…
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.