What happens to my application if a director

2 min read

DiscloseTell the lender

New checksOn the incoming director

GuaranteeMay need re-signing

Re-assessPossible

Why it matters

Directors are central to how a lender assesses a company, especially a smaller one, so a change during the process is a material change you must disclose. An incoming director alters who controls and, potentially, guarantees the borrowing — the lender needs to reassess that, not discover it later.

What the lender will need

Expect identity and credit checks on the new director, as set out in the ID-documents answer. If a personal guarantee is involved, it may need to be re-signed to reflect the new line-up. A departing guarantor's release also has to be handled properly.

Keeping the deal on track

Flag the change early, provide the new director's details promptly, and be ready for a short re-assessment. Where the change strengthens the board it may help the case; where it weakens it, be prepared to explain. See whether a new director can apply. The application checklist helps you assemble the extra paperwork.

Frequently asked questions

Do I have to tell the lender about a director change?

Yes — it is material to their assessment. Disclosing it promptly lets the lender manage it; a change they discover uncovered in verification undermines trust and can stall or end the application.

Will a new director need to give a personal guarantee?

If the facility requires guarantees from directors, an incoming one may need to sign, and a departing guarantor's release must be arranged. The lender will confirm what the new structure requires.