Can LLPs apply? What about groups, subsidiaries, or SPVs?

Short answer — clear, immediate guidance

Yes, many lenders and brokers will consider Limited Liability Partnerships (LLPs) for business finance, and group structures including subsidiaries or SPVs can also apply, but eligibility depends on lender criteria, asset ownership, and the purpose of the borrowing.

Some funders prefer single trading entities while others will accept group applications or SPVs if legal and financial arrangements are robust and transparent.

Can LLPs apply?

What is an LLP and why it matters for lenders

An LLP (Limited Liability Partnership) combines partnership flexibility with limited liability for members and is a common trading vehicle for professional and trading firms in the UK.

Lenders treat LLPs differently from limited companies because member liability, profit allocation and capital structures can vary, which affects credit assessment and documentation.

Eligibility criteria lenders typically use

Most commercial lenders will want to see profitable trading history, filed accounts, and clear ownership or membership records for an LLP before offering finance.

Key checks include Companies House filings, VAT registration, business bank statements, and confirmation of the members’ authority to enter credit agreements.

Documentation, guarantors and member risk

Lenders may request personal guarantees from members, especially where the LLP’s balance sheet is weak or where members enjoy significant control over the business.

Some lenders accept unsecured lending to LLPs but often on stricter terms, higher rates, or shorter tenors compared with incorporated limited companies.

What about groups and subsidiaries?

Single-entity versus group applications

Finance can be provided either to an individual trading entity within a group or to the group as a whole, depending on the borrower’s structure and the lender’s product rules.

Where the trading company is the primary income generator, lenders commonly prefer lending to that entity rather than to a group holding company.

Common lender requirements for group deals

For group-level borrowing or facilities that span several subsidiaries, lenders typically ask for consolidated accounts, intercompany loan schedules, and evidence of how cash and assets are ring‑fenced.

They will also assess intra-group guarantees, cross-charges, and the creditworthiness of each relevant entity before approving a facility.

Subsidiaries, parent guarantees and cross-collateralisation

Parent company guarantees and cross-collateral arrangements are commonly used to strengthen group applications and to give lenders wider recovery options.

Using parent or sister company security can improve pricing and acceptance, but it requires careful legal documentation and clear disclosure to all stakeholders.

Special Purpose Vehicles (SPVs) and holding companies

What is an SPV and why businesses use them

An SPV is a separate legal entity created to isolate financial risk or to own a specific asset or project, commonly used in property, infrastructure, and project finance.

SPVs can make a lot of sense commercially, but they bring specific lender concerns around cashflow sufficiency and the strength of the sponsoring group.

Are SPVs eligible for business finance?

Yes, many lenders will lend to SPVs where the asset generates predictable income or where there is an acceptable sponsor credit profile supporting the SPV.

Lenders will want clear project cashflows, contracts or leases, and often deeds of non‑disturbance, together with appropriate security over the asset.

Lender tests, ring-fencing and structural protections

Lenders test whether the SPV is fully bankruptcy-remote, whether its accounts and contracts are independently enforceable, and whether there are constraints on distributions to sponsors.

Where risks are higher, lenders require higher margins, tighter covenants, or additional guarantees from the parent or sponsor company.

Practical advice when applying with LLPs, groups, subsidiaries or SPVs

Checklist: what to prepare before you apply

Prepare recent management accounts, statutory accounts, bank statements and a clear ownership structure showing members, directors and beneficial owners.

Also provide business plans or project cashflows, copies of major contracts or leases and details of any existing security or intercompany debt.

How Best Business Loans helps you navigate lender criteria

We assess your structure and match you with lenders and brokers who commonly deal with LLPs, group structures and SPVs so you avoid wasted applications and unsuitable terms.

For example, if you need to fund equipment for a trading subsidiary, we can match you to asset-specific solutions such as asset finance that suit subsidiary-level borrowing and preserve holding company corporate structure.

Learn more about asset-specific solutions on our asset finance page: Asset finance.

Common pitfalls and how to avoid them

Failing to disclose intercompany liabilities or existing charges is a frequent reason for deal delays or rescinded offers, so be transparent from the outset.

Also avoid assuming all lenders treat LLPs or SPVs the same; some are specialist and will offer better terms to certain structures than generalist lenders.

Compliance, disclosures, and next steps

Regulatory and advertising compliance considerations

Best Business Loans is an independent introducer and does not provide lending or regulated advice, and we aim to be clear, fair and not misleading in line with FCA and ASA guidance.

When considering offers, ensure lenders’ promotions are clear about eligibility, rates and fees, and that you understand whether the offer requires personal guarantees or security.

What Best Business Loans does — and does not — do

We use AI-driven matching to introduce your enquiry to lenders and brokers who are likely to consider your structure, whether LLP, subsidiary, or SPV.

We do not underwrite finance, set rates, or act on your behalf as an FCA-authorised adviser, and you remain responsible for reviewing lender terms and seeking legal or tax advice where needed.

How to proceed and what to expect next

Start with a Quick Quote to get an eligibility check and an initial indication of suitable provider types for your structure.

After you submit, our system identifies likely matches and introduces you to lenders or brokers who request the necessary documents and run their detailed checks.

Key takeaways

LLPs can apply for business finance but may face lender-specific tests around member liability and documentation.

Groups, subsidiaries and SPVs are regularly funded when legal structures, cashflows and security arrangements are clear and well-documented.

Best Business Loans helps match your structure to lenders who understand it, saving you time and improving your chance of a suitable offer.

Ready to check eligibility for your LLP, group company or SPV? Complete a Quick Quote today and get a fast, no-obligation introduction to lenders who specialise in your structure.