2 min read
Definition
Sole trader finance is funding for businesses run by an individual without a separate legal company. Because a sole trader and their business are legally the same, the owner is personally liable for all business debts.
In plain terms
Unlike a limited company, there is no corporate shield — business debts are your debts. Lenders assess you personally, and your personal assets are exposed.
Why it matters for your company
Many growing sole traders incorporate to separate personal and business risk and access company finance with no personal guarantee. Credicorp lends to UK limited companies, ring-fencing directors from the debt. See personal guarantees.
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Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.