A company limited by guarantee (CLG) registered at Companies House is a UK limited company and may apply to Credicorp. CLGs are common in the charity, social enterprise, and professional-body sectors. The absence of share capital does not automatically prevent approval — what matters is whether the company has trading income from which it can service a commercial credit facility.
Key considerations for CLGs
Many CLGs are also registered charities. Registered charities are outside our lending criteria because charity law restricts how a charity can take on commercial borrowing and because charitable funds are held on trust for specific purposes. If your CLG is a registered charity, we are not the right lender at this time. If your CLG is not a charity — for example, a trade association, a professional membership body, or a social enterprise without charitable status — we assess it as we would any other trading limited company.
What we need from a CLG applicant
- Filed accounts from Companies House showing the company's financial position.
- Management accounts or bank statements evidencing current trading income.
- Clarity on how the funds will be used and repaid from the company's operating income.
- Confirmation that no charitable restriction applies to taking on commercial debt.
Repayment and the no-share-capital structure
Because a CLG has no shareholders to return capital to, retained surpluses typically remain in the business. This can actually support a clear repayment picture. We focus on operating income and expense run-rates rather than dividend or equity metrics.
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: Can a community interest company apply for business finance?, Can a newly incorporated company apply for a business loan?.