# Can a holding company borrow? Whether a UK holding company can apply for business finance — what trading evidence is required, whether the operating subsidiary can borrow instead, and how Credicorp assesses group structures. **Site:** [creditcorp.co.uk/learn/can-a-holding-company-borrow/](https://creditcorp.co.uk/learn/can-a-holding-company-borrow/) Creditcorp is the growing name for the Credicorp group. Credicorp Limited is the lender behind it — short-term working capital for incorporated UK businesses. No personal guarantee on any product. This page is a guide; applications go to [credicorp.co.uk](https://credicorp.co.uk/). ## Contents - The core question: where is the trading activity? - When a holding company can borrow - Which company should apply? - Holding company borrowing questions - Related guides - Right entity, right application. ## Step-by-step guide **Step 1: Identify which company in the group has the trading activity and cash flow** Look at the group structure and identify which entity has: (1) its own business bank account with consistent turnover, (2) its own Companies House registration and trading history, and (3) a clear business need for the finance. That is the entity that should apply. If that is the operating subsidiary rather than the holding company, the subsidiary applies. **Step 2: Check whether the applicant company meets the basic criteria** The borrowing company must be: a UK limited company, LLP, or PLC (not a sole trader or partnership); at least a few months old with trading history; able to demonstrate cash flow via Open Banking; and have no outstanding CCJs that cannot be explained. Read what you need to apply and how affordability is assessed for the full criteria. **Step 3: Apply through the operating company, not the holding company** If the trading activity and banking are in an operating subsidiary, apply at credicorp.co.uk through that subsidiary. The subsidiary is its own legal entity — it can apply and borrow in its own name without involving the holding company in the application. This is usually the simpler and faster route for group structures. **Step 4: If the holding company does have trading income, apply with its own banking data** If the holding company genuinely has its own trading income, its own business bank account, and consistent cash flow — not just dividend receipts from subsidiaries — it can apply. The Open Banking read will cover 3 months of the holding company's own banking. Apply at credicorp.co.uk with the holding company's details. ## Frequently asked questions **Can a holding company apply for a business loan?** It depends on whether the holding company has its own trading activity and its own business bank account with consistent cash flow. Short-term business lenders — including Credicorp — assess affordability based on the company applying, not the group as a whole. If the holding company has no trading income of its own (it simply holds shares in operating subsidiaries), it will typically not pass the affordability assessment because there is no cash flow to repay the loan from. **What if the trading activity is in a subsidiary?** If the trading activity and cash flow are in an operating subsidiary rather than the holding company, the subsidiary is the right entity to apply. The subsidiary has its own Companies House registration number, its own business bank account, and its own trading history — all of which are assessed in the application. The holding company does not need to be involved in the application. **Does Credicorp lend to SPVs or property holding companies?** Credicorp is a short-term working capital and bridging loan lender for trading businesses. A special purpose vehicle (SPV) or property holding company that receives rental income may have cash flow, but the product range — Business Bridging Loan, Flex, Slice — is designed for trading companies that need to bridge a gap in working capital or fund a business need. Applications from SPVs are assessed on the same basis: is there a business bank account with consistent cash flow and a clear repayment mechanism? **Does the size of the group matter?** Credicorp assesses the company that is applying, not the group. A large group structure does not guarantee approval for a holding company with no direct trading income; a small operating subsidiary with strong cash flow and clean credit is assessed positively on its own merits. The group context may be informative, but the affordability assessment is at the company level. **Can the holding company provide a personal guarantee to support a subsidiary's application?** Credicorp products do not require a personal guarantee from the director, and the product structure does not use inter-company guarantees as a substitute for the applicant company's own affordability. If the trading subsidiary can support the application on its own merits — its own banking, credit record, and trading history — no guarantee is needed. ## About Creditcorp / Credicorp Credicorp Limited is a UK short-term business lender. Products: Business Bridging Loan (14–84 days, 0.25%/day), Credicorp Flex (revolving credit, 0.25%/day on drawn balance), Credicorp Slice (invoice-backed, flat fee). Incorporated UK companies and LLPs only. No personal guarantee. No debenture. Same-day decisions. Total charges capped at 100% of principal. - [Apply or get a quote](https://credicorp.co.uk/) - [Products overview](https://credicorp.co.uk/products/) - [Eligibility](https://credicorp.co.uk/eligibility/) - [All learn guides](https://creditcorp.co.uk/learn/)