A limited company can borrow in its own name because it’s legally separate from its directors and shareholders. Your realistic options depend on trading history, turnover, credit profile, loan size and whether the lender wants a personal guarantee or security over company assets. Funding Circle is open to eligible companies trading for at least a year, while iwoca considers newer limited companies. Very new businesses can also consider Start Up Loans, but those are personal loans to the individual director, not borrowing by the company itself.
We checked every rate, threshold and guarantee requirement below against the lender’s own published pages in August 2026. Where a lender publishes no threshold, we have said so rather than filling the gap with an estimate.
Limited Company Loans at a Glance
| Provider / route | Entity type | Best for | Amount | Earliest trading stage | Cost | Personal guarantee? | Eligibility check impact |
|---|---|---|---|---|---|---|---|
| Tide Funding Options | Marketplace | Comparing multiple lenders in one application | From £1,000 | Varies by matched lender | Varies by lender | Varies by lender | Varies by lender |
| Funding Circle | Direct specialist lender | Established limited companies wanting competitive rates | £10,000–£750,000 | 1 year minimum | From 6.9% a year | Required | Soft check: doesn’t affect credit score |
| iwoca | Direct specialist lender | Newer companies or fast-turnaround borrowing | £1,000–£1,000,000 | New start-ups accepted (£10k initial limit) | 49% representative APR | Required | Soft check: doesn’t affect credit score |
| Barclays Business Loan | Bank | Fixed rate with no arrangement or early-repayment fee | £1,000–£25,000 unsecured | Requirements set by Barclays on application | 8.5%–14.9% APR (tiered by amount) | Discretionary | Instant decision online for existing customers |
| Start Up Loans | Government-backed personal loan scheme | Directors of new businesses with no company trading history | £500–£25,000 per applicant | No minimum; business must be up to 60 months old | 7.5% fixed p.a. | None (unsecured personal loan) | Assessed on the individual, not the company |
| Verified 11 August 2026. | |||||||
Types of Business Loans Available to Limited Companies
Four funding types are open to a company borrowing in its own name, and what separates them is what stands behind the loan. That one difference sets the rate you are offered, how much you can raise, and what the lender can take if the company cannot repay. We group them by security rather than by provider, because that is the part that changes the answer for your company.
Unsecured loans are judged on your trading record and credit rather than a pledged asset, so there is nothing to value and decisions come back in days. The lender prices that risk into a higher rate and, in almost every case, asks the main director for a personal guarantee, so the protection is less complete than the name suggests. This is the usual route for smaller, shorter borrowing. Our guide to unsecured business loans covers the lenders and current rates.
Secured loans give the lender a charge over named company property or assets. That brings the rate down and the ceiling up, but the asset has to be valued and legally charged first, which is where the four to eight weeks goes. The trade is worth making on larger, longer borrowing, where the interest saved outweighs the delay. Our guide to secured business loans sets out what can be used as security.
Asset finance funds one specific item, such as a vehicle, a machine or equipment, using that item as the security. The company does not need to charge property separately, and repayments run across the working life of the thing you bought. See asset finance.
Invoice finance advances money against unpaid customer invoices rather than lending against the balance sheet. It fits a company whose cash is sitting in receivables on long payment terms, and it grows with your sales ledger rather than being fixed at the outset. See invoice finance.
We include asset finance and invoice finance here because both are routes a company can take in its own name, and most limited-company loan pages leave them out entirely. Which of the four you can realistically get comes down to the checks in the next section.
Can a Limited Company Get a Business Loan?
Yes. GOV.UK confirms that a limited company has its own legal identity, separate from its directors and shareholders, and can enter into contracts including borrowing. When your company applies for a loan in its own name, the company is normally the borrower and owes the debt.
Directors and shareholders aren’t automatically liable for company debt simply because of their role or ownership stake. That’s the core principle of limited liability. In practice, many lenders require a director to sign a personal guarantee, which creates a separate personal obligation alongside the company debt. We explain the difference in the section on who owes what, below.
Legal structure makes you eligible to borrow as a company. It doesn’t make you automatically creditworthy. Lenders still assess trading history, turnover, cash flow, credit and security before approving a loan.
What Lenders Look at When a Limited Company Applies
Lenders assess a combination of company-level and director-level information. The exact criteria vary by lender and product, and by the size and term of the loan. What a bank requires may differ substantially from what a specialist lender requires, and individual products within the same lender can have different thresholds.
Trading History and Turnover
Most lenders want evidence of trading activity. Funding Circle requires at least one year. iwoca accepts new start-up limited companies. Traditional banks may ask for a more established trading history and filed accounts, though requirements vary by bank, product, loan size and the company’s circumstances. If you’re applying as a company that’s been trading for six months, a specialist lender that doesn’t publish a minimum trading requirement is a better starting point than a bank that asks for two years of accounts. Checking eligibility before you apply avoids a search footprint at that stage.
Turnover matters alongside trading age. A higher turnover supports a larger loan amount in most assessments, but individual lenders set their own thresholds and don’t always publish them.
Business Cash Flow and Accounts
Bank statements are a standard part of most applications. Specialist lenders including iwoca may offer Open Banking as an alternative to manual statement submission. By linking your business bank account through a secure portal, the lender can assess your cash flow directly, removing the need to gather and upload months of statements. For newer companies without two or more years of filed statutory accounts, management accounts or a business plan may be requested by some lenders, particularly for larger loans.
Company Credit History
Lenders check your company’s credit file alongside the director’s personal file. Business credit files are maintained by agencies including Experian Business and Creditsafe, and they include Companies House filing history, outstanding CCJs against the company, and registered company charges. Late filing of accounts at Companies House is visible on the company credit file and is seen by every lender that runs a check. Resolving any late filings before you apply removes a signal lenders treat as a red flag.
Director Credit and Personal Guarantees
Lenders routinely check the personal credit files of the company’s directors. Which directors are checked, and whether a personal guarantee is required from each, depends on the lender’s own underwriting criteria for that product. We found no single shareholding threshold that determines guarantee requirements across the UK lending market. The lender decides who must guarantee and on what terms.
A CCJ or adverse entry on a director’s personal file can affect the company’s application even if it’s unrelated to the business. Checking both your personal and business credit files before applying is sensible, particularly if you haven’t done so recently.
Companies House Record
Lenders verify your Companies House registration as a basic step. An active company with up-to-date director information, a valid registered address and filed accounts in good order signals that the business is properly maintained. A dormant status or late-filing history is noted in the lender’s assessment. We found this to be one of the most straightforward things to address before you apply, and one that’s often overlooked.
Who Is Responsible for Repaying a Limited Company Loan?
The answer depends on how the borrowing is structured. Company debt, a director’s personal guarantee and a Start Up Loan are three different obligations with different consequences for who is personally exposed if the loan isn’t repaid.
The Start Up Loan is the one to watch, because it is not company borrowing at all. The British Business Bank describes it as a personal loan: you are the borrower, not your company, so you personally owe the balance and there is no corporate structure between you and the lender if it is not repaid.
| Funding structure | Legal borrower | What normally backs it | Director’s personal exposure |
|---|---|---|---|
| Company loan, no personal guarantee | Limited company | Company’s obligation only | Normally limited, unless another basis for personal liability exists |
| Company loan with personal guarantee | Limited company | Company obligation plus director guarantee | Director can become personally liable under the guarantee if the company can’t repay |
| Secured company loan (fixed or floating charge) | Limited company | Company asset or charge over company property | Depends on structure; company assets are exposed, personal exposure depends on whether a guarantee is also signed |
| Start Up Loan | Individual (director) | Unsecured personal borrowing | The borrower personally owes the loan; the company is not the legal debtor |
| Verified 11 August 2026. | |||
Company Debt
Where a limited company borrows in its own name without any personal guarantee, the debt sits with the company. If the company can’t repay and enters insolvency, the lender is an unsecured creditor of the company. Directors and shareholders aren’t personally responsible for the shortfall simply because of their role or ownership stake. That’s what limited liability means in practice.
Personal Guarantees
A personal guarantee is a separate, legally binding promise by a director to repay the company’s debt if the company can’t meet the obligation. If you’ve signed a guarantee and the company can’t repay, the lender can pursue you directly for the outstanding balance, separate from any insolvency process against the company. Your personal savings, and in some cases your home, may be within reach of that claim.
We checked the current guarantee requirements for each lender in this comparison. Santander requires a personal guarantee from limited-company applicants to its standard business loan. iwoca requires a director guarantee on its unsecured loans. The Insolvency Service guidance confirms that guarantees are more common where the company is new, has limited history, weaker credit or is taking on significant debt. The specific terms, which directors must sign, the amount, and whether the guarantee is secured or unsecured, are set by the individual lender.
Personal guarantee insurance (PGI) is available to limit your exposure. We found that cover, exclusions and premium cost vary materially between policies. GOV.UK recommends understanding your guarantee and considering independent specialist advice before taking out a policy. Compare the policy terms against the exact liability in your guarantee before you commit to one.
Joint and Several Guarantees
Where more than one director is required to guarantee a loan, the guarantee may be structured as joint and several. This means each guarantor is individually liable for the full amount, not just their proportionate share. If one co-guarantor can’t pay, the lender can pursue any of the others for the whole outstanding balance. The lender sets the guarantee structure; check the terms for the specific product before you sign.
Secured vs Unsecured Loans for Limited Companies
Most of the products in this comparison are unsecured company loans: your company doesn’t provide a specific asset as collateral. The lender’s recourse is against the company’s general assets in insolvency, and against you personally if you’ve signed a personal guarantee. Unsecured loans are typically faster to arrange than secured loans and involve fewer legal steps.
Secured company loans involve the company providing security over a specific asset: property, equipment or other business assets. Larger borrowing from banks and some specialist lenders is often structured this way, and a secured rate is usually lower than an unsecured equivalent because the lender has a direct claim on the security if the company defaults. Funding Circle also offers a secured route for larger loans, using a charge over business assets instead of a personal guarantee from a director.
Our dedicated secured versus unsecured business loans guide sets out the full comparison. If you’re weighing the two options, the key question is whether you’re comfortable pledging a company asset and whether the rate saving justifies the additional legal process.
Fixed and Floating Charges
When a lender takes security over company assets, it does so through a legal charge. A fixed charge attaches to a specific identifiable asset, such as a commercial property or a piece of equipment. A floating charge covers a class of assets that may change over time, such as stock or debtors.
GOV.UK confirms that a company charge must normally be registered with Companies House within 21 days of creation. Once registered, the charge is part of your company’s public record and is visible to any lender or creditor who searches the register. If your solicitor is registering a fixed charge against your commercial property on the day you draw down a secured loan, that charge becomes publicly visible from the moment it’s registered, not after a cooling-off period. Any supplier or future lender who searches Companies House will see it.
How Much Can a Limited Company Borrow?
There’s no single market-wide formula. The amount your company can borrow depends on the lender and on a combination of factors specific to your business: turnover, profitability, cash generation, existing financial commitments, trading history, credit profile and whether the loan is secured. We found no reliable turnover multiple that applies consistently across lenders in this market.
The indicative ranges in this comparison are £10,000 to £750,000 with Funding Circle and £1,000 to £1,000,000 with iwoca. Both are ceilings: what you’re actually offered depends on the lender’s assessment of your specific company. Banks typically set bespoke limits above their standard product range.
Use our business loan calculator to model monthly repayments at different amounts and terms before you approach a lender. It gives you a practical baseline for assessing affordability, even if it can’t predict your actual rate.
What Does a Limited Company Loan Cost?
The total cost is determined by the interest rate, any fees, the loan term and the loan amount. Published starting rates, such as Funding Circle’s 6.9% a year, are available to the most creditworthy applicants on the most suitable applications. The rate you’re offered will depend on your company’s risk profile, trading history and the loan structure.
The main cost components to compare are the annual interest rate or APR, any arrangement or completion fee, early-repayment charges and the total amount repayable over the term. We checked these for each lender in this comparison. Funding Circle charges a one-off completion fee confirmed in your quote, with no early-repayment fee. iwoca charges no fee on 12-month loans, but a drawdown fee may apply on longer terms; there are never early-repayment fees. Barclays charges no arrangement fee and no early-repayment fee.
Our business loan fees guide and interest rates guide explain each cost component in detail. For a specific repayment figure, use the loan calculator.
What Documents Will You Need?
The document set for a limited company loan application varies by lender, product, loan size and the company’s trading age. We found no single universal checklist that applies across all lenders in this market. Santander’s own application guidance makes this explicit: it describes additional information that “might” be requested depending on the application, including the last two years of accounts, six months of bank statements, projections or a business plan for a start-up.
The documents a lender may request include your Companies House registration number and current director information; recent business bank statements (typically three to six months, or via Open Banking); filed statutory accounts where available; management accounts for newer companies or larger loans; VAT registration details where applicable; photo ID for directors being assessed; cash-flow projections or a business plan for some newer or higher-risk applications; and guarantor information where a personal guarantee is required.
Preparing these documents before you apply is practical. Assuming every lender requires all of them is not. Checking the lender’s own document requirements for the specific product saves time and prevents unnecessary document requests during the assessment. If you realise at the point of application that your latest filed accounts are two years out of date, the lender will ask for management accounts to cover the gap, which can add days to a process where timing already matters.
How to Apply for a Limited Company Loan
Before submitting a formal application, you can use soft eligibility checks to compare your options without affecting your credit score. Both Funding Circle and iwoca confirm that an initial check doesn’t affect your credit file. That means you can run two or three indicative checks in parallel and compare the terms before committing to one lender.
- Decide the amount and purpose. Lenders assess what the loan is for as part of the application.
- Check your Companies House record: director details, registered address and filed accounts should be current and accurate.
- Identify lenders that accept your trading stage.
- Use soft eligibility checks where available. Both Funding Circle and iwoca confirm this doesn’t affect your credit score.
- Compare total cost, not headline rate alone: a lower rate with a large completion fee may cost more overall than a slightly higher rate with no fee.
- Review the personal guarantee and security terms before you sign.
- Prepare the documents the lender requests.
- Once you have a clear quote and have reviewed the terms, submit the full application.
How to Improve Your Company’s Chances of Approval
Strengthening your company’s credit position before applying can improve both the likelihood of approval and the rate you’re offered.
Keep Companies House current. Up-to-date director details, registered address and filed accounts are among the first things lenders check. File accounts on time. Late filings appear on the business credit file and are visible to every lender that runs a check.
Build trade credit history. Opening accounts with suppliers on credit terms and paying on time is reported to business credit agencies and builds your company’s score over time. Check and correct your business credit file. We found that errors are more common than most directors expect. Check via Creditsafe or Experian Business and raise any disputes before you apply. Our business credit score guide explains what agencies report and how to read your file.
Review your personal credit file. Lenders assess the director’s personal file alongside the company file. If your accountant spots an outstanding CCJ on your personal file when they’re reviewing your finances before year-end, resolving it before you start your loan search removes a potential early-stage refusal. Avoid multiple formal applications in a short window. Where a lender runs a hard search, it’s visible to other lenders for 12 months. Use soft eligibility checks to narrow your shortlist before committing to a full application.
Limited Company Loan FAQs
Can a newly incorporated limited company get a business loan?
Options are limited for a company with no trading history, but they exist. iwoca accepts new start-up limited companies, subject to a lower initial credit limit. Specialist lenders and broker marketplaces such as Tide Funding Options may route newer companies to suitable products. Directors of very new companies can also consider a Start Up Loan, but this is a personal loan to the individual: you personally owe the debt, not the company.
Do limited-company loans require a personal guarantee?
Many do, but not all. Whether a guarantee is required, who must sign it, and whether it’s secured or unsecured depends on the lender and the specific product. Funding Circle and iwoca both require a personal guarantee on their unsecured company loans. Barclays assesses the guarantee requirement on a discretionary basis. Check the guarantee terms for the specific product before applying, and consider taking independent legal advice before signing a guarantee for any substantial amount.
Do all directors have their credit checked?
Lenders routinely assess the personal credit files of the company’s directors as part of the application. Which directors are checked, and whether a guarantee is required from each, depends on the lender’s own underwriting criteria. We didn’t find a single shareholding threshold that determines this consistently across the UK lending market. Check the lender’s eligibility requirements for the specific product you’re applying for.
Can a limited company get a loan with bad credit?
It depends on the severity of the credit issue, the lender and the loan size. Specialist lenders and broker marketplaces tend to be more flexible than banks. A CCJ against the company or a director’s personal file limits your options but doesn’t necessarily rule out borrowing entirely. Our bad credit business loans guide covers the specialist routes available.
Can a dormant company get a business loan?
A dormant company will usually have very limited borrowing options because it can’t demonstrate current trading cash flow. If the company resumes trading, the trading-history requirement for a company loan depends on the lender and product. Directors of an eligible early-stage business may also consider a Start Up Loan, remembering that this is a personal loan to the individual rather than a company loan.
Does checking eligibility affect my credit score?
Whether a credit check leaves a visible footprint depends on the lender and the stage of the application. Funding Circle says that a limited company or LLP can complete an application and receive a decision without affecting its credit score. iwoca states that applying doesn’t affect your credit score and uses soft credit checks in its initial assessment. Other lenders, particularly banks, may run a hard search at a later stage. Check what type of search will be performed before proceeding with each lender.
Is a Start Up Loan taken out by me or my company?
By you personally. A UK Start Up Loan is an unsecured personal loan made to the individual director for business purposes. The British Business Bank describes it explicitly as a personal loan: your limited company isn’t the legal borrower and doesn’t owe the debt. If the loan isn’t repaid, you are personally liable for the outstanding balance.
Are limited-company business loans FCA regulated?
Generally not in the same way as consumer credit. Borrowing by a limited company typically falls outside the FCA consumer-credit protection regime. The consumer credit protections in the FCA Consumer Credit sourcebook (CONC) don’t automatically apply to a limited-company loan. A director who signs a personal guarantee for company debt doesn’t gain those consumer protections simply by signing the guarantee. This differs from qualifying borrowing by sole traders and small partnerships, which may fall within the regulated perimeter.
How we reviewed this
What we covered. We compared how the main UK business lenders treat a limited company application: trading history requirements, eligibility criteria, rate and fee structure, personal guarantee requirements, credit-search behaviour, and the distinction between company debt, director guarantees and Start Up Loans as personal borrowing.
Data sources. We checked eligibility and pricing against each provider’s own pages in August 2026, including Funding Circle, iwoca, Barclays and Tide Funding Options. Regulatory and liability facts are sourced to GOV.UK, the Insolvency Service, the FCA and the British Business Bank. Provider-specific claims are attributed to the relevant provider and not generalised across the market.
Update cadence. We re-verify this page at least monthly, and whenever a provider changes pricing, eligibility or terms. Some links on this page are affiliate links; see our editorial policy.
Regulatory note. This page is editorial content, not regulated financial advice. Credit products are subject to status and approval. Compare offers directly with providers before you apply. Taking independent legal advice before signing a personal guarantee is strongly recommended.