Learn: applying for a loan

During your application you are asked to make a short Business Purpose Declaration. It is brief, but it is important, so it is worth understanding exactly what you are confirming and why we ask. In plain terms, you are stating that the loan is for your company's business, not for personal spending. That single fact sits at the heart of how this product works and how it is regulated.

What the declaration says

The Business Purpose Declaration is your confirmation that the borrowing will be used wholly or predominantly for the purposes of the company's business. It is made by you on behalf of the company, as a director or otherwise authorised person. It is not a long form; it is a clear statement of fact about how the money will be used.

Why we need it

We lend to UK limited companies and LLPs, which the law treats as bodies corporate. Lending to a body corporate for business purposes sits outside FCA consumer-credit regulation, because a company is not an individual or relevant recipient of credit under Article 60B FSMA RAO 2001. That position depends on the borrowing genuinely being for the company's business. The declaration is how we record that the loan meets this condition. To understand the legal status of the borrower, see what is a body corporate, and for the test itself, see wholly or predominantly business purpose.

Why honesty matters

The declaration is not a formality to click past. It reflects the real basis on which we lend, and the protections and obligations that flow from it differ from consumer borrowing. If a loan were really for personal use dressed up as business borrowing, the declaration would be untrue, and that misrepresentation could affect the agreement and your position. Being straight with us protects both sides. If you are genuinely unsure whether your intended use counts as predominantly business, ask us before you sign rather than guessing.

What “wholly or predominantly business” means in practice

“Wholly” business is straightforward: every pound goes to the company's trading needs, such as stock, equipment, payroll, supplier payments or bridging a timing gap in cash flow. “Predominantly” business covers the realistic situation where use is mostly, but not entirely, for the business. The point is that the main purpose must be the company's business. A loan taken out to fund a personal purchase would not qualify, even if it passed through a company account.

How it fits the rest of your agreement

The Business Purpose Declaration sits alongside the other documents you receive. Your Key Information Sheet (KIS) sets out the amount, term, total cost of credit and the full repayment schedule, and the Business Loan Agreement is the binding contract you sign. The declaration underpins all of it by confirming the loan is the kind of business borrowing this product is for. None of these documents asks for a personal guarantee, because the debt is the company's.

A note on what this status means for you

Because the borrowing is to a company for business purposes, it is not covered by the Financial Ombudsman Service, the FSCS or the BBRS. If you ever needed to escalate beyond our internal complaints process, the route is the courts rather than the ombudsman. That is a direct consequence of the same Article 60B position the declaration helps establish, so it is fair that you see it clearly up front.

If you want to confirm Credit Corp itself before signing anything, you can check our entry on the Companies House register at company number 17338274. And if you are weighing whether short-term business borrowing is right at all, free independent guidance for your business is available from Business Debtline (businessdebtline.org, 0800 197 6026). Read the declaration, make sure it is true for your company, and only then sign.

Full article — permalink →

Applying to Credit Corp is designed to be quick, and the order matters: you see the cost before you commit. Before you fill in a single personal detail, you can look at what a loan would actually cost your company. Here is the whole journey, from checking the figures to signing the Business Loan Agreement, so there are no surprises.

Step 1: see the cost before you apply

Start on our business loans page. Our live product is a short-term Business Bridging Loan of £50 to £500 over 14 to 84 days, repaid weekly or fortnightly. There, you can see the current amounts, terms and the cost of borrowing before you give us anything. We do not advertise a single rate on this page because your figures depend on your company; the exact amount borrowed, total amount payable, total cost of credit and full repayment schedule appear on your Key Information Sheet (KIS) and in the Business Loan Agreement before you sign anything.

We put the quote first on purpose, because a short-term loan is an expensive way to borrow compared with an overdraft or a longer-term facility, and you should see the number before deciding. If it is not right for your company, you can walk away having shared nothing.

Step 2: start your application and create an account

When the cost works for you, head to our application page. You create a short account so you can save your progress and return later, and so we can keep your information secure. We lend to UK limited companies and LLPs for business purposes; the loan is to the company, and we do not take a personal guarantee from you as a director.

Step 3: add your company details

Next we ask for your company. Because we lend to bodies corporate, we need to identify the company on the Companies House register and confirm you are authorised to borrow on its behalf. Having your company number to hand makes this fast. We run a business credit check on the company at this stage as part of deciding.

Step 4: verify the director's identity

We carry out an identity and anti-money-laundering check on you as the director. This is an ID check, not a personal consumer credit search, and it does not affect your personal credit file. Have a photo ID ready so this part takes seconds rather than minutes.

Step 5: connect your business bank

To assess affordability we look at your company's bank activity. The quickest route is read-only Open Banking, where you authorise access through your own bank and can revoke it at any time. If you prefer, you can upload six months of business bank statements as PDFs instead. To know exactly what to gather, read what documents you need to apply before you start.

Step 6: review your offer and sign

If we can lend, we show you an offer with your Key Information Sheet. Read it. It sets out the amount, the term, the total cost of credit and every repayment date. When you are happy, you sign the Business Loan Agreement online. There is also a short Business Purpose Declaration confirming the borrowing is wholly or predominantly for the company's business.

What happens next

Once signed, we move to drawdown: the funds go to your company's bank account, and you repay on the schedule shown on your KIS. We typically approve within an hour and can fund the same business day when your profile is clean and you connect your bank, though human review can take longer.

A few honest notes. We are lending to a company, so this borrowing sits outside FCA consumer-credit regulation under Article 60B FSMA RAO 2001, and it is not covered by the Financial Ombudsman Service or the FSCS. Your protections under data law and your right to a fair process still apply, though the escalation route differs. If you want free guidance for your business at any point, Business Debtline (businessdebtline.org, 0800 197 6026) is independent and free. When you are ready, begin your application.

Full article — permalink →

When you apply, we ask to verify your identity as a director. People sometimes worry this is a personal credit check that will leave a mark on their record. It is not. This is an identity and anti-money-laundering check, a different thing entirely, and it does not affect your personal consumer credit file. Here is what the check is, why we have to do it, and how to get through it quickly.

What the check is

It is a confirmation that you are who you say you are. We check the director's identity against reliable sources, typically using a current photo ID such as a passport or UK driving licence. The purpose is to confirm identity, not to score your personal creditworthiness. We are establishing that the right person is borrowing on behalf of the company.

Why we have to do it

As a lender, we are required to carry out anti-money-laundering (AML) and know-your-customer checks. Verifying the identity of the people behind a company is a core part of that, and it protects you too: it makes it far harder for someone to impersonate you or your company to obtain credit. So the check is both a legal obligation and a safeguard.

Why it is not a personal credit search

This is the key point. An identity check confirms identity; a credit search assesses how you manage credit. They are separate. Our identity and AML check on you as a director is not a personal consumer credit search, and we do not record this loan, or the application, on your personal credit file. The credit check we run is on the company, through business credit reference agencies, not on you. For the fuller answer, see will applying for a Credit Corp loan affect my credit file.

What we ask for

• A current photo ID, such as a passport or UK driving licence.
• Sometimes a quick step to confirm the document belongs to you, for example a photo taken on the spot.
• Confirmation that you are authorised to borrow on the company's behalf.

Having these ready means the check usually takes seconds. If a co-director needs to be involved, having them on hand helps too.

How we protect what you share

We treat your identity information as sensitive and keep it secure, using it only for verification and the checks we are required to make, not for anything unrelated. To understand the safeguards in detail, see how do you keep my information secure. We will never ask you to send your ID to a personal email address or pay a fee to “release” a loan; if anyone does, it is a scam and you should stop.

If the check does not pass first time

Sometimes a check needs a second attempt, often for a simple reason such as a blurred photo, a glare on the document, or out-of-date details. We will tell you and let you try again. It does not count against your application, and it has no effect on your personal credit. A failed first attempt is almost always a photo problem, not a verdict on you.

Where it fits in the application

Identity verification is one step alongside confirming your company and assessing the company's affordability. Because we lend to the company and take no personal guarantee, none of this puts your personal assets on the line. When everything is confirmed and we can lend, you will see your Key Information Sheet (KIS) with the amount, term, total cost of credit and full repayment schedule before you sign the Business Loan Agreement. This borrowing is to a company for business purposes, so it sits outside FCA consumer-credit regulation under Article 60B FSMA RAO 2001 and is not covered by the Financial Ombudsman Service or the FSCS.

Full article — permalink →

Signing the Business Loan Agreement sets a short, predictable sequence in motion. Three things happen, in order: the money reaches your company, repayments begin on a set schedule, and you keep an eye on it all in your portal. Here is each step, so you know exactly what to expect.

Drawdown: the money reaches your company

Once you have signed, we move to drawdown, which simply means releasing the funds. The money goes to your company's bank account, the account the company trades through, not to you personally, because the loan is to the company. When your profile is clean and verification is complete, this often happens the same business day. For the full mechanics, see how drawdown works.

Your repayment schedule

Repayments follow the schedule you already saw and agreed to. A short-term Business Bridging Loan of £50 to £500 over 14 to 84 days is repaid weekly or fortnightly, and every repayment date and amount is set out on your Key Information Sheet (KIS) and in the Business Loan Agreement you signed. Nothing is added to those figures after signing. Keep enough in the company account to cover each repayment on its due date.

Tracking everything in your portal

You can follow your loan from start to finish in your customer portal: your balance, what you have repaid, what is left, and upcoming payment dates. It is also where you can download documents and statements when you need them. If you have not set up access yet, see how to access your customer portal to get in.

Keeping repayments on track

• Make sure the company account has cleared funds before each due date.
• Check your schedule in the portal so dates never catch you out.
• If your bank details change, update them in good time so a payment does not fail.
• Keep an eye on messages from us about anything that needs your attention.

If your circumstances change

Sometimes things do not go to plan, and the worst thing you can do is go quiet. If you think a repayment might be difficult, tell us as early as you can, before a payment fails if possible. We would far rather work something out than have you struggle in silence. Free, independent help for your business is also available from Business Debtline (businessdebtline.org, 0800 197 6026), the FSB (fsb.org.uk) and HMRC's Time to Pay service (gov.uk) for tax arrears. Reaching out early gives you the most options.

Paying early

If the company is able to clear the loan sooner, you can. Settling early reduces the cost of credit, because it stops the remaining interest. An early-settlement charge of up to 28 days' interest may apply, though we waive it in many cases, and the exact amount — if any — is shown in your settlement figure. You can request that figure through the portal or by asking us, so you know exactly what it takes to close the loan.

A few things to remember

Because the loan is to the company, there is no personal guarantee and your personal assets are not on the line. This borrowing is to a body corporate for business purposes, so it sits outside FCA consumer-credit regulation under Article 60B FSMA RAO 2001 and is not covered by the Financial Ombudsman Service, the FSCS or the BBRS; after our internal complaints process, the final escalation is the courts. None of that changes the simple shape of what happens next: the funds arrive, you repay on the agreed schedule, and you track it all in one place. If you ever want to confirm Credit Corp itself, you can check our entry on the Companies House register at company number 17338274.

Full article — permalink →

A County Court Judgment or a patch of adverse credit does not automatically end a business loan application — but it is never irrelevant either. The two questions that matter are: whose record is it, and what does it say about the company now? Here is how we treat CCJs and adverse markers, so you know where you stand before applying.

Whose record is it?

We lend to the company, so we run a credit check on the company — through business credit reference agencies such as Experian Business, Creditsafe and Equifax Business. We do not run a personal credit search on the director, and the director's personal history is not part of our assessment. That cuts both ways:

• A CCJ against you personally — from an old phone contract, a personal loan, a dispute years ago — does not appear in the business credit check and does not directly count against the company's application.
• A CCJ against the company is squarely in scope. It sits on the company's credit file and we will see it.

For the detail of what we do and do not check on the director, see do you credit-check the director personally.

How we weigh a company CCJ

Context decides how much weight a judgment carries. No single marker triggers an automatic decline. Three things move the assessment:

• Satisfied or unsatisfied. A CCJ that has been paid and marked satisfied says "there was a problem and the company resolved it". An unsatisfied judgment says a creditor is still owed money the company has not paid — which is a serious signal when the question in front of us is whether the company will pay us.
• How recent. A satisfied judgment from three years ago, followed by clean trading, reads very differently from one entered last quarter.
• What the account shows now. Roughly six months of the company's bank activity is part of every assessment. Steady income and an account run within its means can offset an older blemish; returned payments and constant pressure at the account floor compound it.

In plain terms: an old, satisfied CCJ with strong recent trading may still get an offer, possibly for less than requested. A recent unsatisfied CCJ usually means we cannot lend, because affordability is exactly what it puts in doubt.

What to do before you apply

• If a company CCJ has been paid, make sure it is recorded as satisfied — you can apply to the court for a certificate of satisfaction, and paying within one calendar month allows the judgment to be removed from the register entirely.
• Check the company's file with the business credit reference agencies for errors, because disputed or wrongly attributed judgments can be corrected. Our guide to business credit reference agencies explains how.
• Let the bank account tell a good story: a few months of clean, regular activity is the strongest counterweight to historic adverse credit.

A caution on "bad credit" lenders

Some lenders advertise business loans specifically for adverse credit, priced accordingly and often propped up by a personal guarantee — which converts the company's risk into your personal risk. We do not take a personal guarantee, so where the company's record says the borrowing is unaffordable we decline rather than lend against your house. If the company is borrowing to cover existing arrears, borrowing is usually the wrong tool — see when not to take a short-term business loan, and note that free, independent help is available from Business Debtline (businessdebtline.org, 0800 197 6026).

This borrowing is to a company for business purposes, so it sits outside FCA consumer-credit regulation under Article 60B FSMA RAO 2001 and is not covered by the Financial Ombudsman Service or the FSCS. Current amounts, terms and costs are on our business loans page.

Full article — permalink →

Most directors applying for a short-term business loan want to know one thing first: how long does a business loan decision take? The honest answer is that it varies, but it is usually fast. With read-only Open Banking and a clean company profile, a decision can come in minutes. If you upload PDF statements, or if your application needs a human to look at it, it takes longer. Here is what drives the loan processing time, so you can get an answer as quickly as your situation allows.

The fast path: minutes

The quickest decisions happen when three things line up. First, you connect your company's bank using Open Banking rather than uploading documents, so we can read the account immediately and securely. Second, your company profile is straightforward: clear on Companies House, with a business credit check that returns cleanly. Third, your identity check passes first time. When all three hold, much of the assessment is automated, and we can often respond within the hour and fund the same business day. To see this from the bank side, read how we verify your company's bank statements with Open Banking.

The slower path: hours to a few days

Several normal things lengthen the timeline, none of which means a no.

• PDF statements instead of Open Banking. If you upload six months of statements, a person reviews them. That is perfectly acceptable, it just is not instant.
• Human review. Some applications go to a person to check. This happens when the picture is mixed, or when the amount is near the top of what the company's cash flow supports. A careful check is sometimes a slower one.
• Information we need to confirm. If your Companies House record is out of date, or your ID check needs a second attempt, we may come back to you. Replying quickly keeps things moving.
• Time of day. Applying late in the day can push funding to the next business day even after a quick approval.

How to speed up your business loan approval

• Choose Open Banking if you are comfortable with read-only access.
• Apply with the bank account your company actually trades through.
• Make sure your company details and directors on Companies House are current.
• Have photo ID ready so the identity check passes first time.
• Watch for any message from us asking for one more thing.

How long does the credit check take?

A fast process does not mean an automatic yes. We still run a business credit check on the company and assess affordability properly; we simply do it quickly when the data lets us. The credit check itself is usually near-instant: we query a business credit reference agency electronically, so how long it takes for a credit check to return is typically seconds rather than days. It only slows down when a record is thin or out of date and we need to confirm details with you. The affordability assessment then looks at trading history, working capital and the cash flow that will service the repayments, so the loan fits the business rather than stretching it. We will sometimes offer less than requested, or decline, because responsible lending means matching the loan to what the company can comfortably repay. A quick decision is a benefit of good data, not a shortcut around the checks.

When you get your answer

If we can lend, your offer arrives with a Key Information Sheet (KIS) setting out the amount, term, total cost of credit and the full repayment schedule, and you sign the Business Loan Agreement online. Signing is the last step in the loan processing time, and it is in your hands: once you have read and accepted the agreement, the funds can be released. You can always preview current amounts, terms and costs on our business loans page before you apply, so the cost is never a surprise at the end.

For more detail on timing, our support note how quickly will I get a decision covers the common cases. Remember this borrowing is to a company for business purposes, so it sits outside FCA consumer-credit regulation under Article 60B FSMA RAO 2001 and is not covered by the Financial Ombudsman Service or the FSCS. Speed should never push you into borrowing that is not right; a short-term loan is expensive, so take a moment with the figures before you sign.

Full article — permalink →

If your application was declined and you have been told to wait before applying again, you have met our reapply cooldown. It can feel frustrating, so it is worth explaining plainly: the cooldown exists to protect your company from taking on borrowing it cannot comfortably afford, and to give you a real chance to come back stronger. It is a feature of responsible lending, not red tape for its own sake.

How long the cooldown is

In most cases the wait is around 30 days. In some situations it can be up to 90 days, usually where the reasons for the decline were more significant and a quick reapplication would be unlikely to change the outcome. We tell you which applies to you, so you are not left guessing. The clock is there to be useful, not to keep you in the dark.

Why a cooldown exists at all

Repeatedly applying for the same loan within days does not improve affordability; it just risks pushing a company toward borrowing that is not sustainable. A short-term Business Bridging Loan is an expensive way to borrow, and applying again and again can be a sign that money is tighter than the figures show. The cooldown is a deliberate brake. It also gives the things we assess, your company's cash flow, bank-account behaviour and business credit file, time to actually change. A fresh application the next day would look almost identical to the one we just declined.

Make the wait count

Treat the cooldown as a window to improve the picture rather than dead time. The most useful steps map directly onto what we look at when we decide.

• Steady the cash flow. Aim for a stretch where income clearly covers your outgoings, so future repayments sit comfortably within normal trading.
• Tidy the bank account. Avoid returned payments and try not to run the account at its limit. A cleaner recent history tells a better story.
• Work on the company's credit file. Pay business creditors on time and address any adverse markers you can. To understand how the rating is built and what moves it, read business credit score: how it works.
• Right-size the request. If affordability was the issue, a smaller amount within the company's comfortable range may succeed where a larger one did not.
• Keep records current. Make sure your Companies House details and active directors are up to date.

What a cooldown means for you

A cooldown is a pause before your next application. It is not a default and is not recorded against you personally. Because the loan would be to the company and we take no personal guarantee, a decline and cooldown do not damage your personal consumer credit file or put your personal assets at risk. If you want the fuller picture of what a decline involves, including your right to ask a person to review an automated decision, see what happens if your application is declined.

If you need money before the cooldown ends

If the pressure is immediate, please do not just wait it out in difficulty. Free, independent help for your business is available now: Business Debtline (businessdebtline.org, 0800 197 6026), the FSB (fsb.org.uk), and HMRC's Time to Pay service (gov.uk) for tax arrears. If the company's situation is serious, a licensed insolvency practitioner (r3.org.uk) can advise on options. These services cost nothing and may help more than another short-term loan would.

When the cooldown ends

Once your wait is over, you can apply again as normal. Check the current amounts, terms and costs on our business loans page first, so you borrow only what comfortably fits your company's cash flow. A cooldown used well often turns a previous no into a yes.

Full article — permalink →

What most borrowers really want to know is when the money lands in the account. This article covers the last leg specifically — what happens between approval and cleared funds, how long each step typically takes, and what can add a day. For the decision itself, see how long a lending decision takes.

The sequence after approval

Approval is an offer, not a transfer. Three things stand between an approved application and the funds:

• You review the Key Information Sheet (KIS). It sets out the amount, term, total cost of credit and the full repayment schedule. This step is in your hands — take the time it deserves, because nothing moves until you accept.
• You sign the Business Loan Agreement online. Signing is the trigger. Until the agreement is signed, no funds are released, however long ago the approval landed.
• We release the funds. Payment goes to the company's own business bank account — the same account we verified during the application, not a different account and never a personal one.

How long the transfer itself takes

Release is typically made by Faster Payments, the standard UK bank-to-bank rail. Once a payment is sent, it usually shows in the receiving account within minutes, and almost always within two hours — most UK business accounts receive Faster Payments around the clock. The transfer is rarely the slow part. In practice, the elapsed time from "approved" to "funds visible" is driven by when you sign:

• Sign during the business day and funding the same business day is the normal outcome.
• Sign late in the evening and release may fall to the next business day, even though the approval and signature happened today.

These are typical patterns, not promises — an individual payment can take longer if the receiving bank queues it or a final check is needed.

What can add a day

• An account mismatch. If the account you want funds sent to is not the one we verified, we will need to re-verify — releasing money to an unverified account is a fraud risk we will not take. Keep it simple: use the account the company trades through, start to finish.
• An unsigned agreement sitting in your inbox. The most common delay is no delay on our side at all. Sign as soon as the figures look right to you, and raise anything you are unsure about with us beforehand.
• A final verification query. Occasionally a release is held for one more check — usually resolved the same day, and always faster when you respond promptly.

When the money lands

Check the amount received against the KIS, note the first repayment date, and make sure the repayment account will hold enough to meet it. What to expect from that point on is covered in after you sign the Business Loan Agreement.

One caution that belongs in every article about speed: fast money is still borrowed money. A short-term business loan is expensive, and same-day funding is a convenience, not a reason. If the need can wait a week, use the week to check the figures. This borrowing is to a company for business purposes, so it sits outside FCA consumer-credit regulation under Article 60B FSMA RAO 2001 and is not covered by the Financial Ombudsman Service or the FSCS. Current amounts, terms and costs are on our business loans page.

Full article — permalink →

You have just incorporated, the company number has arrived from Companies House, and you need working capital. Can a brand-new limited company borrow? The short answer: in principle yes — a newly incorporated company is a body corporate and is the kind of entity we lend to — but in practice the decision turns on evidence, and a company with no trading history has very little of it. Here is how we look at a young company, what actually counts, and what to do if it is too early.

Incorporation is not the barrier — evidence is

There is no rule that says a company must be a certain age before it can apply. We lend to UK limited companies and LLPs, and a company incorporated last month qualifies as an entity just as much as one incorporated ten years ago. The difficulty is different: we assess affordability on the company's own trading — its turnover, its business bank-account behaviour over roughly the last six months, and its business credit file. A company that has not yet traded has an empty bank account history, no revenue pattern, and a credit file that is thin by definition. We cannot see whether the repayments are affordable, because there is nothing yet to see.

What a young company can show

A company does not need years of accounts to demonstrate affordability — it needs enough real activity for the numbers to speak. In practice that means:

• A business bank account that has been trading. Money coming in from customers, normal outgoings, and an account that is not permanently at its floor. Several months of genuine activity carries far more weight than any projection.
• Consistent revenue, even if modest. A steady £8,000 a month for five months tells us more than a single £40,000 receipt.
• A clean start on the company credit file. No missed payments to suppliers or other lenders in the company's short life.

What does not substitute for this: a business plan, revenue forecasts, or the director's personal income. We do not lend against projections, and we do not assess the director personally — the loan is the company's, so the evidence must be the company's. See what we look at when we decide for the full picture.

If your company has traded elsewhere first

Some directors incorporate after a period as a sole trader. Be aware that the company is a new legal person: your sole-trader bank history belongs to you, not to it, and cannot simply be transferred into the assessment. If you are weighing that move, read switching from sole trader to limited company before applying for finance first — incorporating solely to borrow rarely works, because the new company starts with a blank record.

What to do if it is too early

If your company has only weeks of activity, the honest advice is to trade first and apply later. Open the business bank account immediately, run every transaction through it, keep the Companies House record accurate, and pay suppliers on time so the company credit file starts clean. A few months of that groundwork typically puts a young company in a position where an application can be assessed properly. When you are ready, the current amounts, terms and costs are on our business loans page.

Because we lend to a company for business purposes, the borrowing sits outside FCA consumer-credit regulation under Article 60B FSMA RAO 2001 and is not covered by the Financial Ombudsman Service or the FSCS. Only take on a short-term loan when the trading genuinely supports the cost.

Full article — permalink →

Every lender says it "assesses affordability". This article says what that actually means at the level of signals: the specific patterns in a company's finances that push a decision towards yes, towards a smaller offer, or towards no. If what we look at when we decide is the map, this is the close-up terrain. The raw material is roughly six months of the company's business bank activity, read alongside its business credit file — and the question every signal feeds is the same one: can this company make these specific repayments without strain?

Signals that carry real weight

• Income regularity, not just income size. Twenty deposits a month from different customers is a stronger signal than one large monthly receipt from a single payer, even at the same turnover — it means no single customer failing can empty the account. Frequency and spread matter as much as the total.
• Headroom above the floor. An account that spends most of the month comfortably above zero can absorb a repayment; an account that scrapes its floor or overdraft limit before every income day cannot, whatever the turnover figure says. We look at where the balance lives, not where it peaks.
• Returned and failed payments. Bounced Direct Debits and refused standing orders are the single loudest negative signal, because they show the account already failing to meet the commitments it has. One isolated return with an obvious cause reads differently from a monthly pattern.
• Existing repayment load. Visible repayments to other lenders come off the top of what the account can support. A company already servicing several facilities has less room, and stacking short-term loans on top of each other is a pattern we treat with particular caution.
• Direction of travel. Six months of data has a slope. Gently rising income with stable outgoings supports a loan; a quarter of decline followed by an application can suggest borrowing to fill a hole rather than to fund an opportunity — which is exactly the situation described in when not to take a short-term business loan.

Signals that matter less than people think

A single quiet month in an otherwise steady record. Seasonal dips that recur at the same point each year. One large, explained outgoing such as a tax payment or equipment purchase. None of these sinks an application on its own, because we are reading the pattern, not hunting for a bad week. Equally, one spectacular month does not make an unaffordable loan affordable.

What we deliberately do not read

The director's salary, household outgoings, personal savings and personal credit history are not part of the assessment — the company borrows, so the company's finances answer the question. That also means a strong personal position cannot rescue a weak company application, as explained in lending to the company, not the director.

Reading your own account before we do

The useful exercise takes ten minutes: open the last six months of the business account and ask what a stranger would conclude. Does income arrive steadily? Does the balance keep clear of the floor? Are there returned payments to explain or fix? Would the proposed repayment fit inside the average month's surplus — not the best month's? If the answer to that last one is no, the right response is a smaller application or a later one, not optimism. We will sometimes offer less than requested for exactly this reason.

You provide the account data by read-only Open Banking or PDF statements — the signals are the same either way. Because we lend to a company for business purposes, the borrowing sits outside FCA consumer-credit regulation under Article 60B FSMA RAO 2001 and is not covered by the Financial Ombudsman Service or the FSCS. Current amounts, terms and costs are on our business loans page.

Full article — permalink →

Yes. A UK limited liability partnership can apply for a business loan with us on exactly the same footing as a limited company. LLPs sometimes assume business lending is a companies-only club — it is not, but the application has a few LLP-specific wrinkles around who signs and what we check. Here is the full picture for members.

Why an LLP qualifies

An LLP, like a limited company, is a body corporate: a legal person separate from its members, incorporated at Companies House with its own registration number (typically beginning OC), able to own assets and owe debts in its own name. That separate legal personality is precisely what makes our lending work — we lend to the entity, the entity owes the money, and the members are not personally liable for it, just as shareholders and directors are not for a company's borrowing. The concept is unpacked in what is a body corporate. Partnership-style tax treatment makes no difference here; what matters to a lender is legal personality, and an LLP has it.

Who applies and who signs

Where a company acts through a director, an LLP acts through a member — and every LLP must have at least two designated members, who carry the compliance duties (filing accounts, maintaining the register). For a loan application, the person applying should be a member with authority to borrow on the LLP's behalf. Practical points:

• The applying member goes through the same identity and anti-money-laundering check as a company director would — an ID check, not a personal credit search, with no effect on the member's personal credit file.
• Check your LLP agreement before applying. Many agreements require member consent, or a decision of designated members, for borrowing above a threshold. That is internal governance — we will take your authority at face value in the same way we do a director's — but signing without it creates a problem between you and your fellow members that no lender can fix.
• Members' agreement matters, but the borrower is the LLP: the Business Loan Agreement is in the LLP's name, and the money lands in the LLP's business bank account.

How the LLP is assessed

Identically to a company: the entity's own trading, roughly six months of its business bank activity via Open Banking or PDF statements, and a business credit check on the LLP's file. Nothing about members' personal finances enters the assessment, no personal guarantee is taken from any member, and the borrowing is not reported on any member's consumer credit file. One structural note: because LLP profits are drawn by members rather than retained as salary costs, an LLP's account can show large, irregular member drawings — that is normal and expected, but an account drained to its floor by drawings immediately before an application reads the same way heavy dividends would for a company. The signals we read are set out in what affordability signals matter.

The trap: ordinary partnerships are different

Do not confuse an LLP with a general (ordinary) partnership or with two sole traders working together. An ordinary partnership has no separate legal personality in England and Wales — a loan to "the partnership" is a loan to the individual partners, which is a different legal category (and, for small partnerships, one that falls within consumer-credit regulation). We cannot lend to ordinary partnerships or sole traders, however solid the business; the eligibility line is explained in limited company, LLP or sole trader eligibility. If your letterhead says "Partners" but Companies House has never heard of you, you are an ordinary partnership, not an LLP.

Lending to an LLP for business purposes sits outside FCA consumer-credit regulation under Article 60B FSMA RAO 2001 and is not covered by the Financial Ombudsman Service or the FSCS. Current amounts, terms and costs are on our business loans page.

Full article — permalink →

When you apply, the most common question is simple: what are you actually looking at? The honest answer is that we are assessing your company, not you personally. We lend to UK limited companies and LLPs for business purposes, the loan is to the company, and we do not take a personal guarantee from its director. So our decision is built around whether the business can afford to repay, not around your personal income, your household, or your benefits.

Below are the three things we weigh, what we deliberately ignore, and how you can put your best foot forward. For our wider lending philosophy, see how we lend.

1. Turnover and trading

We look at what the company earns and how steadily. A short-term Business Bridging Loan is repaid weekly or fortnightly over a few weeks, so what matters is whether your trading income comfortably covers those repayments alongside your normal outgoings. We are not looking for a huge business; we are looking for a business whose income makes the specific loan you want affordable. A short, recent trading history can be enough if the numbers add up.

2. How your business bank account behaves

Your company's main bank account tells an honest story: money in, money out, and whether the account is run in a healthy way. We look at roughly the last six months. Regular income, an account that is not constantly at its limit, and an absence of returned payments all help. You provide this either through read-only Open Banking, which is fastest, or by uploading PDF statements. Either way, we are reading the account, never moving money from it.

3. The business credit file

We run a credit check on the company using business credit reference agencies such as Experian Business, Creditsafe and Equifax Business. This shows the company's payment history with other creditors and any adverse markers against the business. We also carry out an identity and anti-money-laundering check on the director, but that is an ID check, not a personal credit search, and it does not affect the director's personal consumer credit file. To understand how a company's business credit rating is built, read business credit score: how it works.

What we do not look at

We do not assess the director's personal income, personal credit score, salary, household budget, or benefits. The borrowing is the company's, so the affordability question is the company's too. We also do not require you to put up personal assets, because there is no personal guarantee. If something about a decision relied on your personal finances, that would be the wrong question for this product.

How the three fit together

No single factor is a pass or a fail on its own. A strong bank account can balance a thin credit file. Nor does one quiet month undo a steady trading record. We are trying to answer one fair question: can this company comfortably repay this amount on this schedule? That is also why we will sometimes offer less than you ask for, or decline, even when parts of the picture look good. Responsible lending sometimes means saying no, or saying "not this much, not yet".

Putting your best case forward

• Apply using the bank account your company genuinely trades through.
• Borrow an amount that sits comfortably within your normal cash flow, not at the edge of it.
• Keep your Companies House record current.
• Clear or explain any returned payments before you apply if you can.

Whatever we decide, you will see your figures clearly. If we can lend, your offer comes with a Key Information Sheet (KIS) showing the amount, term, total cost of credit and full repayment schedule before you sign the Business Loan Agreement. Because we are lending to a company for business purposes, this sits outside FCA consumer-credit regulation under Article 60B FSMA RAO 2001 and is not covered by the Financial Ombudsman Service or the FSCS. Short-term borrowing is expensive, so if a cheaper route works for your business, take it.

Full article — permalink →

Being declined is disappointing, and we will not pretend otherwise. But a no from us is meant to be honest and specific, not a closed door. Here is what a decline actually means, the reasons it usually happens, your right to ask a person to look again, and how to reapply with a stronger application. We would rather decline kindly and clearly than leave you guessing.

What a decline means

A decline means that, on the information available, we did not think this loan was affordable or appropriate for your company right now. It is a judgement about the company and this specific borrowing, not about you as a person. Because the loan is to the company and we take no personal guarantee, a decline does not put your personal assets at risk and does not record a default against you personally. To understand the principles behind our decisions, see how we lend.

Common reasons

• Affordability. The company's turnover or cash flow did not comfortably support the repayments on the amount requested. Sometimes a smaller amount would work.
• Bank-account signals. Returned payments, an account run consistently at its limit, or very thin recent activity can count against an application.
• Business credit file. Adverse markers against the company, picked up through business credit reference agencies, can weigh heavily.
• Information we could not confirm. If we could not verify the company, the director's identity, or the bank activity, we may be unable to proceed.

We will tell you why

We aim to give a clear, specific reason rather than a vague rejection, because a reason you can act on is far more useful than a polite brush-off. If anything is unclear, you can ask us.

Your right to human review

If a decision was made by automated means, you have the right under UK GDPR Article 22 not to be subject to a solely automated decision that significantly affects you, and to ask for a person to review it. You can request that a member of our team re-examines your application, take into account anything you want to add, and reconsider. This right is yours even though the lending itself is to a company, because it concerns how the decision about your data was made. Ask us, explain your side, and a human will look again.

Reapplying

You can apply again. To protect you from borrowing that is not affordable, there is usually a short cooldown before a fresh application, typically around 30 days and up to 90 in some cases. That pause is a deliberate part of responsible lending, not a punishment. It also gives you time to improve the things that led to the decline. Read the 30 to 90 day reapply cooldown, explained for the detail and the timing.

What to improve before you try again

• Strengthen cash flow so repayments sit comfortably within normal trading.
• Clear any returned payments and avoid running the account at its limit.
• Address adverse markers on the company's business credit file where you can.
• Keep your Companies House record current and accurate.
• Consider applying for a smaller amount that the company can clearly afford.

If now is not the time to borrow

Sometimes the most useful outcome of a decline is the prompt to pause. A short-term loan is an expensive way to borrow, and if your business is under financial pressure, free independent help may serve you better. Business Debtline (businessdebtline.org, 0800 197 6026) and the FSB (fsb.org.uk) offer free guidance for businesses, and HMRC's Time to Pay (gov.uk) can help with tax arrears. There is no shame in stepping back. When the company is in a stronger position, you can always check current amounts, terms and costs on our business loans page and try again.

Full article — permalink →

To decide whether a loan is affordable for your company, we need to understand how its bank account behaves. The quickest and most secure way to share that is Open Banking. It often feels like the part of the application people are most cautious about, so here is exactly what happens, what we can and cannot see, and the PDF alternative if you would rather not connect your bank at all.

What Open Banking is

Open Banking is a regulated, UK-wide framework that lets you give a business read-only access to your account information through your own bank. When you choose it during your application, we act as what is called an Account Information Service Provider (AISP). That gives us read access to your company's transaction history so we can assess affordability. The permission carries no power to move, take or touch your money in any way. For the wider picture of what Open Banking is and why it is safe, see what is Open Banking and is it safe.

How you authorise it

You stay in control the whole time. The connection is made through your own bank's secure login: you confirm the access there, using your bank's normal security, not by handing us your banking password. We never see or store your online banking credentials. You are the one granting permission, directly, at your bank.

What we can see, and for how long

We look at roughly the last six months of the company's transaction activity, income in, payments out, and how the account is generally run. That is enough to judge whether the repayments on the loan you want sit comfortably within your trading. We do not need, and do not get, the ability to make payments. To see how this feeds the wider decision, read business credit score: how it works.

You can revoke access at any time

The permission you grant is not permanent and not one-way. You can withdraw it whenever you like, either through your bank or by asking us, and the read-only access stops. Many people choose to revoke access once their application is complete, which is entirely reasonable.

Why it is faster

Because the data comes straight from your bank in a structured form, much of the affordability check can be done immediately. That is why applications using Open Banking often get a decision in minutes and can be funded the same business day, while PDF uploads, which a person reads, take longer.

If you would rather not connect your bank

Open Banking is optional. If you prefer, you can upload six months of official business bank statements as PDFs instead. This is fully acceptable and reaches the same decision, though it takes a little longer because a member of our team reviews them by hand. Choosing PDFs does not count against you. If you try to connect and it does not work, just switch to uploads.

How this protects you

Read-only access is genuinely safer than emailing statements around, because there is nothing for anyone to intercept and no payment power to misuse. We keep the information we receive secure and use it to assess your company, not for anything else. We also assess the company, not your personal finances, and we take no personal guarantee from you as a director.

We built our application around this kind of secure, customer-controlled data sharing, and our technology page goes into the approach in more detail. Remember that this borrowing is to a company for business purposes, so it sits outside FCA consumer-credit regulation under Article 60B FSMA RAO 2001 and is not covered by the Financial Ombudsman Service or the FSCS. Whichever method you choose, you will see your full figures on your Key Information Sheet (KIS) before you sign the Business Loan Agreement.

Full article — permalink →

The fastest applications are the ones where everything is ready before you start. Credit Corp's process is short, but we still need a few things to identify your company, confirm you can borrow on its behalf, and understand whether the borrowing is affordable. This is the full checklist, with the quickest option flagged for each item, so you can gather it once and apply in one sitting.

1. Proof of your identity as a director

We carry out an identity and anti-money-laundering check on the person applying. Have a current photo ID ready, such as a passport or a UK driving licence. This is an identity check, not a personal credit search, so it does not leave a footprint on or affect your personal consumer credit file. For the detail of how this works, see ID verification when you apply.

2. Your company details

Because we lend to UK limited companies and LLPs rather than to individuals, we need to identify the company on the Companies House register. The single most useful thing to have to hand is your company registration number; with it, most company details populate quickly. We also need to know that you are authorised to borrow on the company's behalf, for example as a director.

3. Six months of business bank activity

To assess affordability we look at how the company's main business bank account has behaved over roughly the last six months. There are two ways to provide this.

• Open Banking (quickest). You authorise read-only access through your own bank. We can only see, not move, money, and you can revoke access at any time. This usually means a decision in minutes. To understand exactly what we can and cannot see, read how we verify your company's bank statements with Open Banking.
• PDF statements (alternative). If you would rather not connect your bank, you can upload six months of official business bank statements as PDFs. This is just as acceptable; it simply takes a little longer to review, because a person checks them.

What we do not ask for

We assess the company's affordability, not yours personally. So we do not ask for your personal payslips, your household income, your benefits, or your personal bank statements. We also do not take a personal guarantee from you as a director, so you are not signing your own assets onto the company's debt. If anyone claiming to be from Credit Corp asks for an upfront fee to release a loan, that is a scam: walk away.

Things that speed everything up

• Use the business account your company actually trades through, not a dormant or secondary one.
• Make sure your Companies House record is up to date, including the registered office and active directors.
• Apply as the director who is authorised to borrow, or have your co-director ready to confirm.
• Use a device with a camera if you are providing photo ID.

A note on what comes after the documents

Once we have your identity, your company and your bank activity, we run a business credit check on the company and make a decision. If we can lend, you will see an offer with your Key Information Sheet (KIS), which sets out the amount, term, total cost of credit and the full repayment schedule before you sign the Business Loan Agreement. You can always see the current amounts, terms and costs on our business loans page first.

This borrowing is to a company for business purposes, so it sits outside FCA consumer-credit regulation under Article 60B FSMA RAO 2001 and is not covered by the Financial Ombudsman Service or the FSCS. If you want free, independent help for the business while you decide, Business Debtline (businessdebtline.org, 0800 197 6026) is a good place to start. Gather the three items above and you can move through the application quickly and confidently.

Full article — permalink →

"How long does my company need to have been trading?" is one of the most-searched business lending questions, and most answers are a number pulled out of the air. Here is our actual position: we do not publish a fixed minimum trading time. But that is not the same as "any company, any age" — the assessment itself creates a practical benchmark, and it is more useful to understand the mechanism than to memorise a number.

Why the practical benchmark is about six months

Our affordability assessment reads roughly the last six months of the company's business bank activity, provided through read-only Open Banking or PDF statements. That window is where a repayment decision comes from: income regularity, balance headroom, returned payments, existing commitments — the signals set out in what affordability signals matter. A company that has been trading for around six months can fill that window with real data. A company trading for six weeks cannot, and no document substitutes for the missing months — not forecasts, not a business plan, not the director's own income. So the honest framing is: the closer your trading history gets to six months of genuine account activity, the more there is to assess; materially less than that, and an application usually cannot demonstrate affordability yet.

Trading time is quality as well as length

Two companies can both show six months and read completely differently. What makes a trading history assessable:

• The activity sits in the business account. Trading that happened in cash, or through a personal account, is invisible to the assessment. The clock effectively starts when the business bank account starts carrying the real activity.
• Continuity counts. Six months containing four dormant ones is really two months of history.
• Arm's-length activity only. Genuine customer receipts are what carry weight. Money the director simply circulates through the account adds nothing, and the pattern is far more visible than people assume.

Common situations

• Newly incorporated, not yet trading: too early — the groundwork that shortens the wait is covered in can a newly incorporated company get a business loan.
• New company, established trade (a sole trader who incorporated): the company is assessed as new, since a new legal person carries none of the sole trader’s own history. See switching from sole trader to limited company before finance.
• Old company, recently revived: incorporation date flatters it — a company registered in 2015 that restarted trading in January has months, not years, of relevant history. The account activity decides, not the birthday.
• Seasonal business: six months capturing only the low season can understate the company; where the account shows last year's pattern too, the fuller cycle is visible.

Why we do not just publish a number

A hard threshold would be simpler to advertise and worse at lending. It would refuse a company with eleven strong months because it wanted twelve, and wave through a two-year-old company whose recent trading has collapsed. Reading the actual account avoids both mistakes. It also means the answer to "am I too early?" is genuinely checkable by you: open the business account, look at the last six months, and ask whether a stranger could see steady income and room for the repayment. If yes, apply — the full process is in how to apply, step by step. If no, a few more months of clean trading is the strongest application-improver there is.

Because we lend to limited companies and LLPs for business purposes, the borrowing sits outside FCA consumer-credit regulation under Article 60B FSMA RAO 2001 and is not covered by the Financial Ombudsman Service or the FSCS. Current amounts, terms and costs are on our business loans page.

Full article — permalink →

Directors often delay applying while they chase paperwork they think lenders expect: last year's accounts from the accountant, a business plan polished over a weekend, a spreadsheet of forecasts. For our application, none of those is required. Here is the definitive split between what we genuinely need and what you can stop preparing — and why the shorter list is not a lower standard.

What we do not ask for

• Filed or management accounts. Statutory accounts describe a year that ended months ago — for a small company, sometimes eighteen months ago by the time they are filed. They are the past, filtered. We assess the repayments against the company's current cash position, which accounts cannot show.
• A business plan. Plans describe intentions. Lending against intentions is how loans end up unaffordable, so we do not ask for one and would not weight one if sent. The bank account shows what the business does, not what it hopes.
• Revenue forecasts or cash-flow projections. Same principle: a projection is an argument, not evidence.
• VAT returns, tax computations, contracts with customers. Not required.
• Anything about you personally beyond photo ID: no payslips, no personal bank statements, no personal credit report. See do you credit-check the director personally.

What we actually use instead

Three things, all of which most directors can produce in one sitting — the full checklist with tips is in what documents you need to apply:

• Photo ID for the identity and anti-money-laundering check on the applying director.
• The company's registration number, so we can identify it on the Companies House register and run a business credit check on the entity.
• Roughly six months of business bank activity, via read-only Open Banking (fastest) or uploaded PDF statements.

The reason this shorter list is not a softer test: the bank account is the one document a business cannot dress up. It shows real receipts, real outgoings, real returned payments, in date order, produced by a third party. Six months of it answers the affordability question more honestly than any pack of prepared documents — which is precisely why it is the evidence we read, signal by signal, as set out in what affordability signals matter.

Where the confusion comes from

The accounts-and-business-plan expectation is real — it belongs to other kinds of finance. A bank term loan over five years, a commercial mortgage, or an application to the British Business Bank's programmes will typically want accounts, forecasts and a plan, because long money reasonably asks long questions. A short-term facility measured in weeks is assessed on short evidence: what the account is doing now. Matching the evidence to the term is the whole logic. If what your business needs is five-year money, prepare the fuller pack and approach the right product for it — our comparison of bridging loans, term loans and credit facilities is a reasonable starting point.

One thing worth preparing anyway

Not for us — for you. Before borrowing, be able to state in one sentence what the money is for and how the repayments fit the company's normal month. If that sentence is hard to write, the problem is not paperwork. A short-term loan is expensive money. If the sentence will not come, read when not to take a short-term business loan before you apply.

We lend to UK limited companies and LLPs for business purposes, which sits outside FCA consumer-credit regulation under Article 60B FSMA RAO 2001 and is not covered by the Financial Ombudsman Service or the FSCS. Current amounts, terms and costs are on our business loans page.

Full article — permalink →

Short answer: no. We run a credit check on the company and an identity check on you — and those are two very different things. Because the distinction decides whether applying leaves any trace on your personal record, it is worth being precise about what each check is, what it touches, and what it cannot touch.

The check we run on the company

The company is the borrower, so the company's record is what we search. We query business credit reference agencies — Experian Business, Creditsafe, Equifax Business — for the company's payment history with suppliers and lenders, any CCJs against the company, and its filing record. This search is against the company's registration number, sits on the company's file, and has nothing to do with your personal consumer file at Experian, Equifax or TransUnion. How that company file is built is covered in business credit score: how it works.

The check we run on you

On the director who applies, we run an identity and anti-money-laundering check: confirming you are who you say you are, verifying your photo ID, and screening against sanctions and fraud databases. UK lenders are required to do this. What matters for your credit record is the type of search. Identity verification goes on your consumer file as a search visible only to you, so other lenders never encounter it and your credit score is untouched. We run no credit application search at any point. The mechanics are in ID verification at application.

What we never look at

• Your personal credit score or credit history.
• Your salary, dividends or household income.
• Your mortgage, personal loans or credit cards.
• Your personal bank statements.

This is not a courtesy — it follows from the structure of the product. We lend to the company, we take no personal guarantee, and we assess affordability on the company's own trading. Your personal finances are not the backstop for the loan, so they are not part of the question. We neither penalise a director for an imperfect personal history nor give credit for a strong one, because the application stands or falls on the company's own numbers. See what we look at when we decide.

During the loan and afterwards

The separation holds for the life of the loan. Repayments are not reported to consumer credit agencies against you. A late payment or default is a serious matter for the company's credit standing, but it does not appear on your personal file, because the debt was never yours. The wider question of applying's effect on credit files is covered in will applying for a Credit Corp loan affect my credit file.

One honest caveat about other lenders

Do not assume this is the industry standard — it is not. Many business lenders do run a personal credit search on directors, especially where a personal guarantee is part of the deal: if you are the backstop, your file is their business. When comparing offers, ask each lender two questions together: "will you search my personal credit file?" and "do you require a personal guarantee?" The answers usually travel as a pair. Ours are no and no; the current amounts, terms and costs are on our business loans page.

Because we lend to a company for business purposes, the borrowing sits outside FCA consumer-credit regulation under Article 60B FSMA RAO 2001 and is not covered by the Financial Ombudsman Service or the FSCS.

Full article — permalink →