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  • FIRST POST
    • sneaky
    • By sneaky 5th Jul 18, 11:07 AM
    • 114Posts
    • 25Thanks
    sneaky
    Business Loan
    • #1
    • 5th Jul 18, 11:07 AM
    Business Loan 5th Jul 18 at 11:07 AM
    I recently set up a limited company and I'm the only shareholder. I opened a business account with santander with who I also have a personal account. I wanted to apply for a business loan to kick start the company. I understand I am personally liable and they will do a credit check on me.


    What I'm not sure about is whether the loan will show up on my credit file. I have asked both santander and experian and they both keep sending me back to each other. I can't afford to have the loan on my file as I will be applying for a mortgage in the next few years.


    Does anyone know whether it will appear on my personal report or the company report?



    What checks do you need to do for me to get a Business loan with Santander?
    To apply for a business loan you must agree to us conducting a credit check on you. It's very important to provide accurate information in your application - we might decline your application based on the results of your credit check, or if you have provided false information.

    What are the consequences if I do not keep up with repayments?
    If you miss a repayment, we can deduct the missed payment from your other accounts with us. We will also record details with a credit reference agency which could damage your credit rating.
    If you miss multiple repayments, your credit rating can be damaged and you might have legal proceedings brought against you or a charging order registered against your house.
Page 1
    • Slinky
    • By Slinky 5th Jul 18, 11:19 AM
    • 5,447 Posts
    • 25,616 Thanks
    Slinky
    • #2
    • 5th Jul 18, 11:19 AM
    • #2
    • 5th Jul 18, 11:19 AM
    At a guess, if the business has no assets, the loan will be a personal one. Santander, or any bank, won't lend money to a new small limited company with no assets. It's too easy to wind up and walk away if things go wrong.
    • sneaky
    • By sneaky 5th Jul 18, 1:54 PM
    • 114 Posts
    • 25 Thanks
    sneaky
    • #3
    • 5th Jul 18, 1:54 PM
    • #3
    • 5th Jul 18, 1:54 PM
    Very limited assets currently less then the loan amount I need. I have no issue with being liable if the company goes bust and happy to accept the terms of the loan. Only issue it the loan appearing on my personal file. I might take the risk hopefully it will just be a credit check.
    • fishybusiness
    • By fishybusiness 8th Jul 18, 11:12 AM
    • 1,229 Posts
    • 770 Thanks
    fishybusiness
    • #4
    • 8th Jul 18, 11:12 AM
    • #4
    • 8th Jul 18, 11:12 AM
    [QUOTE] I can't afford to have the loan on my file as I will be applying for a mortgage in the next few years./QUOTE]

    Perhaps the operative word in the quote above is afford

    If you are thinking a mortgage application may be declined due to loan payments, it would be on the basis of affordability?

    Simple answer is take the loan and move your potential mortgage back, or take the mortgage and don't borrow for your business.
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