A UK limited company that operates as a subsidiary of an overseas parent is assessed in its own right. Provided it is registered at Companies House, has a UK business bank account, and has UK trading activity, it can apply for any of our products. We do not look through to the parent company or require the parent to co-sign or guarantee the facility.
Assessing a UK subsidiary
We focus on the subsidiary's own revenue, expenses, and cashflow. If the subsidiary is primarily a cost centre or pass-through entity with minimal standalone income — for example, a UK sales office whose contracts are booked by the parent — we will need to understand clearly how repayments will be funded. Inter-company transfers from the parent can count as a repayment source if they are consistent and documented.
Inter-company loans and transfer pricing
Some UK subsidiaries receive funding from their parent via inter-company loans. If your subsidiary's balance sheet is heavily structured around such arrangements, share a brief explanation alongside management accounts. We are familiar with group treasury structures and will not penalise a clean inter-company funding model — we simply need to understand the cashflow picture clearly.
What the application requires
- The subsidiary's filed accounts or, if newly incorporated, current management accounts.
- A UK business bank account for drawdown and repayment.
- Details of the operating model and how the subsidiary generates or receives the income that will service the debt.
- No parent guarantee — the facility is with the UK entity alone.
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: Does a company with overseas directors qualify for Credicorp business finance?, Can a group of companies apply for business finance?.