Can a Limited Company Get a Business Loan?

Yes. Limited companies are the most common borrowers in UK commercial finance, and most lenders prefer them to sole traders because filed accounts and Companies House records make assessment straightforward.

How a limited company is assessed

Lenders look at the company and its directors together. From the company: filed accounts, management accounts, business bank statements, existing borrowing and time trading. From the directors: personal credit files, homeowner status and experience. A profitable company with weak directors, or strong directors with a loss-making company, will both face questions.

The personal guarantee question

Almost all unsecured lending to a limited company will require a personal guarantee from one or more directors. This does not remove limited liability for anything else; it simply means that if the company cannot repay this loan, the guarantor is personally liable. Secured lending and some asset finance can be arranged without a personal guarantee, which we cover in a separate article.

What a limited company can borrow

• Unsecured business loans: £10,000 to £500,000, typically over one to six years.
• Secured business loans: larger sums against property or assets, with longer terms and lower rates.
• Asset finance: funding for vehicles, machinery and equipment with the asset as security.
• Revolving credit facilities: flexible lines you draw and repay as needed.
• Invoice finance and trade finance: working capital that grows with your turnover.

Newly incorporated companies

If you have recently incorporated an existing sole-trader business, many lenders will treat the trading history as continuous, provided you can evidence it. A genuinely new company will need 6–12 months of trading for most products, with asset finance and merchant cash advance the earliest available.

Why use a broker

Every lender has its own appetite for sector, size and structure. DNA Finance places limited companies with the lenders most likely to approve them at the best available terms, and we handle the paperwork so you can keep running the business.