One of the most-asked questions when a director first looks at a Credicorp loan is: am I on the hook personally? The answer is no — and we think it's important enough that we explain it twice: once in the Business Loan Agreement and once here.
What "no personal guarantee" actually means
The borrower is the company. Not the director, not a co-borrower, not a spouse. The legal obligation to repay sits with the body corporate that signed the agreement. If the company cannot pay, we have rights against the company — but not against the director's personal finances.
What that means in practice
- We cannot ask a director to pay the company's debt from personal funds.
- A missed payment by the company does not affect the director's personal credit file with the major UK credit reference agencies — only the company's record.
- If the company is dissolved or goes through insolvency, the debt does not transfer to the director.
- We do not require, request or hold any personal guarantee, ever.
What it does not mean
The company still owes the money, and we still expect repayment under the Business Loan Agreement. If the company is in genuine difficulty, the right step is to tell us early — see our Debt collection page for our full approach, and our Help with payments page for the routes available.
Why we built it this way
Lending to a body corporate is outside FCA consumer-credit regulation, so we are not the right product for sole traders or for personal borrowing — that has always been our position. Choosing to lend without a personal guarantee makes that distinction concrete, and means a director can ask for finance without putting their own circumstances on the line.
Common questions about personal guarantees and business loans
Do all UK business lenders require a personal guarantee?No — but most mainstream and alternative lenders do require one, especially for small unsecured loans where the company has limited assets. Credicorp is one of a small number of UK lenders that explicitly does not require a personal guarantee. The borrower is always the company, and recourse is always to the company only.
If the company cannot repay, what happens without a personal guarantee?We have rights against the company under the Business Loan Agreement — we may pursue the debt through the company and, where necessary, through the courts. We cannot pursue the director personally, or make a claim against personal assets. If the company is in genuine difficulty, the most important step is to contact us early so we can discuss options before enforcement action becomes necessary.