# Why sole traders can't borrow from Credicorp Credicorp lends only to UK limited companies, LLPs and PLCs — not to sole traders or partnerships. This guide explains the Article 60B requirement and how to incorporate to qualify. **Site:** [creditcorp.co.uk/learn/why-sole-traders-cant-borrow/](https://creditcorp.co.uk/learn/why-sole-traders-cant-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 rule: the borrower must be a body corporate - What counts as a body corporate? - How to become eligible: incorporating as a limited company - Eligibility questions - Already a limited company? ## Step-by-step guide **Step 1: Check your trading structure** Confirm whether you currently trade as a sole trader, partnership, LLP or limited company. Check your HMRC registration and Companies House record. If you are registered at Companies House as a limited company or LLP you are a body corporate and can apply for Credicorp products. If you trade under your own name as a sole trader, or as an ordinary partnership, you are not currently eligible. **Step 2: Decide whether to incorporate** Incorporating as a UK private limited company (Ltd) costs £50 online at Companies House and takes under 24 hours. You become the director. The company is a separate legal entity that can open its own bank account, register for VAT if needed, and build its own credit profile. Consider the tax and administrative implications — a sole trader moving to Ltd has different PAYE, corporation tax and filing obligations. **Step 3: Open a dedicated business bank account in the company's name** Once incorporated, the company must have its own bank account. Do not use a personal account or a sole trader account. Business bank accounts at providers like Starling, Monzo Business, Tide, or the major high street banks can be opened online in days. All trading income and expenditure should flow through the company account — this is what a lender will assess. **Step 4: Build at least three to six months of company trading history** Most short-term lenders, including Credicorp, require three to six months of bank statements showing the company's trading activity. In the first months of trading, establish a consistent pattern of income and outgoings. Keep Companies House filings current — confirmation statements and accounts — as these feed the bureau record. **Step 5: Apply at credicorp.co.uk once the company is established** Once the limited company has three to six months of trading history under its belt, apply at credicorp.co.uk. The assessment looks at company bank statements (via Open Banking or PDF upload), Companies House data and business credit bureau data. There is no personal credit check and no personal guarantee required. ## Frequently asked 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. ## 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/)