Company (LTD.) Loan vs. Personal Credit Score?

[RP93]

Hey guys,

My sincerest apologies if this seems like a question which has an obligatory obvious answer or has been asked before.

Just like the title says basically, I am in need of a loan for my start-up to get us through the initial phase of developing product & bringing in inventory. The company is fashion-based so there is no chance whatsoever of investment and a loan is literally the only option.

However, I am wondering that even though the company is a Limited Company (UK), I am the only member mentioned & have full ownership rights. Therefore will the loan largely affect my own personal credit rating or will they be 2 completely separate things?

In a nutshell, I guess I am asking with regards to finances for a Limited Company, are that of the company and the owner separate entities or are they both intertwined? Another example being that if the company were to go bust, would that also largely affect my own credit rating?

Thanks for any advice that can be offered here, and once again my apologies if this seems like a redundant question to ask.

 

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[blackhat]

If you have an established business you could get a loan fully under the company. As a new company with no revenue, you'll most certinaly be personally liable for the debt. So if the business tanks, it's not just your credit score on the line. You'll still have the debt to pay off.

Is a loan truly the only way? Is there any way you could start somewhere else in fashion and scale up to where you want to be? Or use crowd funding?