Credicorp

Incorporation

Incorporation is the process of forming a company so that it becomes a separate legal person, distinct from the individuals who own and run it. A business is incorporated by registering at Companies House, which issues a unique company number and brings the company into legal existence. Incorporation is what creates limited liability and the separation between the business and its owners.

What it does: Creates a company as a separate legal person.
Where it happens: At Companies House, which issues a company number.
What it brings: Limited liability and a distinct legal identity.

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Why incorporation matters for borrowing

Once a business is incorporated, it can borrow in its own name as a separate legal entity. That borrowing is the company's obligation rather than the personal obligation of its directors, which is why lending to an incorporated business is treated differently from lending to an individual — and why it sits outside the consumer-credit regime. Incorporation is, in effect, the gateway to body-corporate lending.

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Incorporation and limited liability

The limited liability that comes with incorporation means the owners' personal exposure to the company's debts is generally confined to what they have invested. This protection can be set aside where a director signs a personal guarantee, or in cases of wrongful trading or fraud — but as a rule, an incorporated business shields its owners' personal assets from its trading debts.

Incorporation and Credicorp

Credicorp lends to incorporated UK businesses — limited companies and LLPs — not to consumers or sole traders. Incorporation, and a UK business bank account, are part of what makes a business eligible. Credicorp Limited is itself incorporated in England and Wales (Company No. 16093826; ICO ZC157682), and is not affiliated with Credicorp Inc of Peru, Credit Corp of Australia, or any other Credicorp entity outside the United Kingdom.

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