New Govt Bounce Back Loan - Should I go Ltd before applying?

Squeaky_Kleen
Squeaky_Kleen Posts: 23 Forumite
Part of the Furniture 10 Posts Combo Breaker
edited 26 May 2023 at 1:12PM in Coronavirus Board
I've just completed my first year as a sole trader.  I understand I'll be able to apply for a new bounce back loan of around  This would give me a real boost, but I'm wary that as a sole trader, should I have any financial issues in the future, the debt would be my personal responsibility.  Would it be sensible to convert to a Ltd company before taking this debt on?  Or would it then be regarded as a new business and therefore ineligible for the loan?  
Also I've been fairly disorganised and not used a separate business account for my first year of trading, what proof will the lenders need to show  that I'm a legitimate business? Will my UTR be enough? I've not submitted my 19/20 self assessment yet , but I will get it done ASAP if that will help?  

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