2 min read
Two separate identities
A limited company is a separate legal person with its own credit file, distinct from the director's. The company can build, use and be judged on its own credit without touching yours — the point of limited liability.
Why keeping them apart matters
Separation protects your personal credit from business setbacks and vice versa. A rough patch for the company need not scar your own file, and your personal finances stay your own. It also keeps your bookkeeping clean and your liability limited.
Where the two entangle
A personal guarantee deliberately links them — the director's credit and assets back the company debt. Mixing personal and company money, or a director's loan, can also blur the line. Avoid these where you can.
How to keep them apart
Use a separate company bank account, avoid personal guarantees, and borrow through the company on its own merits. See no-PG loans and building business credit.
Borrow on the company's file
Check the company can carry the loan on its own numbers.
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See indicative terms on business loans, or apply online in minutes.
Frequently asked questions
Is business credit separate from personal credit?
For a limited company, yes — it has its own credit file, distinct from the director's. The company can build and be judged on its own credit without touching your personal record, unless the two are linked.
How can a business loan affect my personal credit?
It should not, for company-only lending with no personal guarantee. But signing a personal guarantee links the two, and mixing personal and company money can blur the line. Keeping finances separate protects both files.
How do I keep business and personal credit apart?
Use a separate company bank account, avoid personal guarantees, and borrow through the company on its own merits. Clean separation preserves both your limited liability and your personal credit record.
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