Sole Trader looking to Incorporate as a Limited Company?

There are many advantages to incorporating as a limited company vs. remaining a sole trader. You could instantly be eligible for a Selina BCF using your trading history.

Ordinarily, as a sole trader begins to increase revenues they may look into setting up a limited company to reduce their tax burden or involve other people into their business as directors and shareholders. There is also a significant tax benefit once a sole trader is generating around £30,000 a year in profits.

Limited companies are also likely to find it easier to secure business finance than a sole trader, especially with more traditional lenders.

Can I get a BCF as a recently incorporated limited company who previously operated as a sole trader?

(Your property may be repossessed if you do not keep up repayments on your mortgage)

Selina’s Business Credit Facility requires 2 years worth of trading history in order to demonstrate historic business performance. This trading history can however be through a sole trader, assuming that the assets & operations are now being run through a limited company.

This would give companies, that were until recently sole traders, access to Selina’s BCF at affordable interest rates and terms from 5-30 years, helping to power their growth.

All we’ll need to provide a quick quote is; your operating profits as a sole trader, any existing credit commitments and the valuation and address of the property you would like to secure your facility against.


Can I get a BCF as a recently incorporated limited company who previously operated as a sole trader?

Unsecured finance, especially for recently incorporated businesses, can often be expensive with rates sometimes reaching over 20% at some expensive providers. By leveraging a residential property you can bring down your cost of capital and potentially free up cash every month for your business operations.

With Selina’s 5-30 year terms, you can make sure monthly payments are as affordable as necessary by ensuring terms are over a much longer period then most business loans.

What are the other options for Sole Traders?

Some lenders will offer finance options for sole traders, but these are often capped at £25,000-£30,000 and do not have the same flexibility as the options available to limited companies.

It will likely be a lot easier to obtain finance as a sole trader if you take card payments through a PDQ machine (e.g. run a stall at a market) as it will give potential lenders some strong verifiable data to demonstrate your revenue.

Merchant cash advance therefore is a popular choice here. Sole Traders can also opt for secured loans against personal assets or unsecured loans which are likely to come with a personal guarantee and at lower credit limits. You can also opt for a guarantor loan or crowdfunding if traditional routes are not available to you.