How do I apply for a business loan with a

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BothProvide ID and details

StrongerCombined profile

Joint and severalLiability

All directorsMay need to sign

Why apply jointly

Adding a co-director or co-owner can strengthen an application by combining track records and, where personal guarantees apply, spreading the security across more people. On a company facility the borrower is the company, but lenders often want all significant directors named and, above a threshold, each to guarantee. See whether joint applying improves your chances.

What each person provides

Every named individual supplies identity verification and, if guaranteeing, personal details for a credit check. The company still provides its accounts, bank data and the reason for borrowing. Make sure everyone is available to respond and sign, since a missing co-applicant is a common cause of delay.

Understanding joint liability

The crucial point is joint and several liability: where two people guarantee, the lender can pursue either for the whole debt, not just half. Understand this before signing — the guarantee guide explains it. Confirm the amount is affordable for the company with the affordability calculator, then enquire for a business loan.

Frequently asked questions

Does a co-applicant have to be a director?

For a company loan, guarantors are usually directors or significant shareholders. A lender is unlikely to accept an unconnected co-applicant, since the guarantee is tied to control of and stake in the business.

If one co-applicant has poor credit, does it hurt the application?

It can, because the lender assesses each guarantor. A weaker file on one person may not sink the deal if the company and the other guarantor are strong, but it is a factor.