does personal credit affect your company credit (sole director company)

londonTiger

I have a ltd company which I recently set up. It's a low overhead company, no rent, no staff, limited overheads. But liquid (into profit within first year).

I would like to get access to credit because I need capital big time. It's an equipment hire company and we're hiring out 3 different items - need to expand inventory quicker so we can do more business. Can't rely on revenue reinvestment as it will be too slow.

I have been paying off my personal debt and closed 4 credit card accounts and have just 1 credit card with a balance of £1200 to pay.

I was wondering whether having personal debt increases or decreases my credit worthiness (for my company).

I am the sole director, company is new so any creditor will do a personal credit check in my name before issuing credit - i presume.

I have about 4 grand of business credit card debt (which I have kept in order to build company credit history). I have funds to pay that off immediately. But I am withholding doing so.

pompeyred

I think the personal review depends on the lenders you approach and how long you have been in business and what your returns and balance sheets show.

If you have a well managed business credit card already then it is likely your business finances alone might secure further business lending, have you had this conversation with your business manager.