Business Loans for Limited Companies: What You Need to Know
Limited companies access the widest lender pool of any UK business structure. But directors still carry personal exposure through personal guarantees — and lenders assess every director’s credit, not just the applicant’s.
- One application reaches multiple lenders — no hard credit search on your file.
- Covers term loans, revolving credit, and invoice finance for limited companies.
How Limited Company Structure Affects Your Loan Options
A limited company gives you access to the widest lender pool of any UK business structure. Every major commercial lender — high-street banks, Funding Circle, iwoca, Capify — accepts limited companies. General partnerships and sole traders face a narrower field.
The reason is practical. We note that a limited company is registered at Companies House, files annual accounts, and has a publicly verifiable history.
Lenders can pull your company credit score, check your filed accounts, and verify your directors before you apply. That makes the assessment faster and the risk easier to price.
We found your Companies House number is the first thing most lenders will ask for. From there, they check turnover, look for County Court Judgements, and confirm directors on record.
We found the biggest practical advantage of limited company status is in the rate you can access. Secured lending from high-street banks and lower-rate unsecured products from Funding Circle are both unavailable to general partnerships and sole traders.
Personal Guarantees: What Directors Need to Know
Limited liability protects your personal assets from the company’s trading debts in most circumstances. It does not protect you from a personal guarantee on a business loan.
We found almost all unsecured business loans require at least one director to provide a personal guarantee. If the company can’t repay, the lender can pursue you personally for the outstanding balance. The corporate structure doesn’t stand between you and that liability once you’ve signed.
We consider this the most misunderstood aspect of limited company borrowing. Directors often assume the limited company structure insulates them completely — it doesn’t, once a personal guarantee is in place.
For sole directors, a personal guarantee covering the full loan amount is standard. We confirmed this is consistent across both high-street banks and specialist lenders. For companies with multiple directors, lenders typically require all directors to sign.
The structure may be joint and several — any director can be pursued for the full balance regardless of their shareholding — or proportionate, where each guarantees their ownership share.
We find joint and several is the default. Proportionate structures are occasionally available to well-established companies with strong accounts, but you need to ask.
If a director leaves after a loan is agreed, their guarantee doesn’t automatically transfer to the remaining directors. The lender must agree to release it — which typically requires repaying the loan or providing a replacement guarantee.
What Lenders Need from a Limited Company
We found that before reviewing your application, most lenders pull your Companies House record. They check whether accounts are up to date, whether your confirmation statement is current, and whether any director or company CCJs are registered.
You’ll also need business bank statements (typically 3–6 months), filed accounts or management accounts, and personal ID for all directors. High-street banks typically require 2 years of filed accounts. Specialist lenders like iwoca and Capify may accept 12 months or less.
If your company hasn’t filed its first accounts yet, some specialist lenders will work from management accounts or Open Banking data instead.
iwoca uses Open Banking as its primary assessment tool — which is why it can lend to companies that have been trading for less time than high-street banks require.
Lenders run a personal credit check on directors in addition to a company credit check. We found this is where multi-director companies most often run into problems — a CCJ against one director affects the application even if the company’s own record is clean.
Which Lenders Accept Limited Companies
Limited companies have access to the full range of commercial lenders. Your trading age, turnover, and credit position determine what’s available — not your structure.
If your company is nine months old and needs £20,000 to cover a supplier invoice, Funding Circle isn’t open to you yet — but iwoca can assess from your bank statements today, and Start Up Loans are available with no trading history required.
Funding Circle offers term loans from 6.9% APR for limited companies and LLPs with at least 12 months of trading. It doesn’t accept general partnerships or sole traders.
iwoca accepts limited companies with no stated minimum trading period. Startups can apply but are capped at £10,000. Established companies can access up to £1,000,000. Representative APR is 49%.
High-street banks offer secured term loans from 3–8% APR for limited companies with 2+ years of filed accounts and a clean credit position.
Capify accepts limited companies with at least 12 months of trading and £10,000 per month in turnover. It considers all credit profiles including CCJs.
Start Up Loans from the British Business Bank are available to directors of newly incorporated limited companies. Up to £25,000 per director at 7.5% fixed APR, with no personal guarantee required.
We recommend checking trading history requirements before you approach a lender. The gap between iwoca’s flexibility for new companies and Funding Circle’s 12-month minimum is material if you’re under a year old.
What You Need to Apply
Most lenders start with your Companies House registration number and pull your filing history directly. If your accounts are overdue or your confirmation statement is out of date, that flags a problem before your application is reviewed.
Beyond that, you’ll need business bank statements (3–6 months), filed accounts or management accounts, and personal ID for all directors. If your company is VAT-registered, VAT returns provide supporting evidence of turnover.
Director credit checks are standard. All directors are typically assessed — a four-director company means four personal credit profiles reviewed, not just the one submitting the form.
We recommend resolving any discrepancies between your Companies House record and your accounts before you apply. Mismatched turnover figures or outdated director details cause delays that are straightforward to avoid.
If your company is under 12 months old and bank lending isn’t available, your options are iwoca (Open Banking assessment, no stated minimum trading period), Capify (12 months minimum, all credit profiles), or Start Up Loans (no trading history required, up to £25,000 per director).
Business Loans for Limited Companies FAQs
Can a limited company get a business loan?
Yes. Limited companies have access to the widest lender pool of any UK business structure. High-street banks, Funding Circle, iwoca, Capify, and government-backed Start Up Loans all accept limited companies. Your trading age and credit position determine which products are available, not your structure.
Do limited company directors need to sign personal guarantees?
In most cases, yes. Almost all unsecured business loans require at least one director to provide a personal guarantee, even though the company has limited liability. Joint and several guarantees — where any director can be held liable for the full amount — are the standard structure for commercial lenders.
How long does a limited company need to have been trading to get a loan?
It depends on the lender. High-street banks typically require 2+ years of filed accounts. Funding Circle requires 12 months. iwoca has no stated minimum trading period — startups can apply but are limited to a £10,000 credit limit. Capify requires 12 months and £10,000 per month in turnover. Start Up Loans from the British Business Bank require no trading history.
Can a newly incorporated limited company get a business loan?
Yes, through specific lenders. Start Up Loans (up to £25,000 per director at 7.5% fixed APR) require no trading history. iwoca can assess newer companies via Open Banking but caps startups at £10,000. High-street banks and Funding Circle require at least 12 months of trading.
What if one director has a CCJ or bad credit?
A director with adverse credit will affect the application — lenders run personal credit checks on all directors, not just the one applying. High-street banks are likely to decline. Capify considers all credit profiles including CCJs, though this typically raises the rate or reduces the amount available.
This guide was researched using primary sources including lender eligibility pages, FCA guidance, British Business Bank documentation, and Companies House records. The content covers business loans available to UK limited companies. Verified in May 2026.
Rates, terms, and eligibility criteria vary by lender and business circumstances. The information here covers general principles as of May 2026 — verify current terms directly with providers before making decisions.
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