When you apply for a business loan with us, we conduct a search of your company's commercial credit file with one or more UK credit reference agencies. That search is recorded on the company's bureau file and is visible to other lenders who subsequently search the same file.
What type of search do we carry out?
We carry out a full credit search as part of underwriting. Unlike a soft or quotation search, a full search is visible to other commercial lenders. Multiple full searches in a short period can sometimes be interpreted by other lenders as a sign that a company is actively seeking credit from several sources simultaneously, which may affect their assessment. This is a common feature of commercial credit — not unique to our process.
Do we search director personal credit files?
No. Our lending decision is based on the limited company or LLP as a legal entity. We do not run a personal credit search on directors, and we do not require a director personal guarantee as a condition of lending. The search is a company-level commercial enquiry only.
How long does a search stay on the company file?
Commercial credit searches typically remain visible on a company's bureau record for twelve months from the date of the search, after which they drop off automatically. They do not accumulate as permanent adverse entries. If the application results in a loan being taken, the facility itself will be reported to the bureau as an active credit commitment throughout its term and closed upon full repayment.
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee required. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: What data do you use to make a lending decision?, Can I reapply after a decline?.