™
Why sole traders
can’t borrow here.
Credicorp lends only to UK limited companies, LLPs and PLCs — not to sole traders or ordinary partnerships. This is not a creditworthiness judgement; it is a structural requirement rooted in how the product is regulated. This guide explains why, and what a sole trader can do to become eligible.
The core rule: the borrower must be a body corporate
Credicorp lends only to bodies corporate — UK limited companies (Ltd), limited liability partnerships (LLP) and public limited companies (PLC) registered at Companies House. The company is the sole contracting party and the sole obligor; the director signs as a representative of the company, not as a personal guarantor.
A sole trader is a natural person trading under their own name. They have no separate legal entity at Companies House. An ordinary partnership has no separate legal personality either. Neither is a body corporate.
The reason this matters is regulatory. Under Article 60B of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, lending to a body corporate falls outside the definition of a “credit agreement” for regulated consumer credit purposes. This specific exemption allows Credicorp to operate as an unregulated business lender — not a regulated consumer credit lender. Lending to a sole trader would be consumer credit. Credicorp is not authorised for that.
What counts as a body corporate?
| Structure | Body corporate? | Eligible for Credicorp? |
|---|---|---|
| UK limited company (Ltd / Ltd.) | Yes | Yes |
| Limited liability partnership (LLP) | Yes | Yes |
| Public limited company (PLC) | Yes | Yes |
| Sole trader | No | No |
| Ordinary partnership (2+ individuals) | No | No |
| Unincorporated association | No | No |
| Charity (if an incorporated body) | Depends on structure | Contact Credicorp |
How to become eligible: incorporating as a limited company
Incorporating as a UK private limited company takes less than 24 hours and costs £50 online at Companies House. Once incorporated, the company is a separate legal entity from you personally. It can open its own bank account, build its own trading history, and apply for Credicorp products once it has three to six months of bank statements.
- Incorporate at Companies House. Use the online Companies House formation service or a formation agent. Choose a company name, confirm the registered address, confirm you as director and shareholder. £50 standard, 24-hour service.
- Open a dedicated company bank account. The company is a separate legal entity and needs its own account. Tide, Monzo Business, Starling, and the high street banks all offer business current accounts. All trading income and expenditure must flow through it.
- Trade for at least three to six months. Lenders use bank statement data as the primary affordability signal. Build a consistent pattern of income and outgoings. Keep Companies House filings current — confirmation statement, accounts — as these build the bureau record.
- Apply at credicorp.co.uk. Once the company has an established trading history, apply. The assessment uses the company’s bank data and bureau record. No personal credit check. No personal guarantee.
For more on what to have in place before applying, read can a newly incorporated company borrow? and preparing your company to borrow.
Eligibility questions
Why can't a sole trader borrow from Credicorp?
Credicorp's products are designed exclusively for bodies corporate — UK limited companies (Ltd), limited liability partnerships (LLPs) and public limited companies (PLCs). Under Article 60B of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, lending to a body corporate falls outside regulated consumer credit, which allows Credicorp to operate without FCA consumer credit authorisation. A sole trader is a natural person, not a body corporate, so lending to them would be regulated consumer credit — a different regulatory regime that Credicorp does not operate under.
What about a partnership?
An ordinary partnership (two or more individuals trading together) is also not a body corporate — it has no separate legal personality distinct from its partners. Lending to an ordinary partnership would therefore also fall outside the Article 60B exemption. A limited liability partnership (LLP) incorporated at Companies House is a body corporate with separate legal personality and does qualify.
Can I incorporate my sole tradership to become eligible?
Yes. Incorporating as a UK limited company (Ltd) at Companies House creates a separate legal entity — a body corporate — that can apply for Credicorp products. You would become the director and typically the sole shareholder. The company would need to have a separate business bank account, generate its own transaction history, and build its own Companies House and bureau record. Most lenders require at least three to six months of trading history in the company's name.
Is there anything a sole trader can do right now?
Credicorp's products are not available to sole traders, regardless of turnover or creditworthiness. If you are currently a sole trader and need working capital now, you would need to look at consumer credit products (subject to FCA regulation) or at lenders who do accept sole traders. Credicorp cannot point to specific alternatives — the right course depends on your circumstances and you may wish to take independent financial advice.
Does "no personal guarantee" apply to the director of a limited company?
Yes. When a limited company borrows from Credicorp, the company is the sole borrower. The director is not a party to the agreement, provides no personal guarantee, and has no personal liability for the company's debt under the facility. This is the commercial benefit of incorporated status — the company and its director are separate legal persons.
Already a limited company?
If your business is already incorporated as a UK limited company, LLP or PLC, you can apply at the lender’s site today.