DRO and being a director of LTD comp?

Electrum

I know you can be a directer after a year, but will your DRO on your credit file affect the companys ability to obtain credit?

Will it be less of an impact after a few years of good credit references?

National_Debtline

Hi Electrum


You should certainly expect your personal credit file to be checked by any prospective lenders to your company, even if it is just a standard business bank account being opened.


The effect (if any) of your DRO will depend on how reliable a prospect your company looks to any such lenders. They may seek the additional security of a personal guarantee from a company director if they have any reservations about granting your company credit. Any adverse information on your file will tend to reduce in impact over time, and will drop off it altogether after six years.


A sound business plan will help improve your company's chances of being offered any credit lines it may require. You may find some useful information via the following links:


https://www.businessdebtline.org/EW/Pages/default.aspx


https://www.gov.uk/business-support-helpline


Dennis
@natdebtline

Electrum

Thanks so much. I am only one of the directors, and dont have much to do with the business, Im a sleeping partner

The other directors are doing most of it, but they are going to apply for some credit and they dont know I had a DRO a couple of years ago. I frightened that my history may mess up the business.

The_Real_Cheddar_Bob

just look out for documents that ask if any of the directors/owners have ever been made bankrupt.

business insurance for example.

wba31

rjwr wrote: »

just look out for documents that ask if any of the directors/owners have ever been made bankrupt.

business insurance for example.

Except Electrum has never been made bankrupt - only completed a DRO. 2 different solutions - so look out for questions as rightly advised by rjwr - but don't tick yes to bankruptcy, only to insolvency or DRO.