Does a business loan affect my personal credit?

Why the two are separate

A limited company is a distinct legal person. Its debts are its own. When you borrow through the company with no personal guarantee, that business loan belongs to the company and is recorded against the company, not against you. Your personal credit file continues to reflect your own affairs — your mortgage, cards and personal commitments — untouched by the company's facility.

What can touch your personal credit

The picture changes if you sign a personal guarantee, which ties you to a specific debt and can affect you personally if the company cannot pay. It can also change with sole traders, who are the same legal person as their business. Neither applies to a standard Credicorp facility: we lend to limited companies, to the company, without a personal guarantee.

Applying without worry

Assessment focuses on the company — its trading, its cash flow, its ability to repay. Where an individual is looked at, it tends to be a light-touch view rather than the kind of hard search that leaves a footprint. Keeping company and personal finance cleanly separated, as this structure does, is one of the quieter advantages of borrowing through the business.