Can a company get a bridging loan after the director has been bankrupt?
Yes — though the options depend heavily on how long ago the bankruptcy was, whether the director has been discharged, and the strength of the security property and exit strategy.
The distinction that matters: the limited company is the borrower, not the director. The director's bankruptcy is a personal insolvency event. The company's ability to borrow is separate — subject to the company's own position and the lender's criteria regarding the director's background.
During bankruptcy — what is possible?
While an individual is an undischarged bankrupt, they are subject to significant legal restrictions. Crucially, a bankrupt individual cannot act as a company director without permission from the court. If the director remains in post and is still within the bankruptcy period, independent legal advice is essential before any borrowing is considered.
An undischarged bankrupt is prohibited from acting as a company director or being involved in the management of a company without court permission. If you are currently bankrupt, take independent legal advice before taking any steps.
After discharge — what opens up?
Discharge from bankruptcy typically occurs automatically 12 months after the bankruptcy order. Once discharged, the legal restrictions are lifted — the individual can act as a director and provide personal guarantees. Finance options for the limited company then become the relevant question.
Recently discharged (under 12 months)
Very limited specialist lender options. Low LTV required. Very strong property and a compelling exit strategy are essential. Some lenders will not consider within 12 months of discharge — we will tell you honestly what is available.
1–2 years post-discharge
Options improve materially. More specialist lenders will consider the application. Lower LTV remains a requirement but the range of available lenders widens significantly.
3+ years post-discharge
Wider range of specialist adverse credit bridging lenders available. The focus shifts primarily to the property, LTV, and exit strategy. Credit profile is a factor but no longer the dominant one.
6+ years post-discharge
The bankruptcy is removed from the credit file. The director's credit history no longer shows the bankruptcy event, and mainstream adverse credit lenders may also be available.
What do lenders actually look at?
Specialist bridging lenders who work with post-bankruptcy directors assess the application as a whole picture:
Security property
Value, type, location, and condition. A clean, lettable investment property in a strong location provides the most lender confidence.
LTV
The lower the LTV, the more lenders will consider the application. Post-bankruptcy applications with 40–50% equity in the security are in a fundamentally different position to those at 70%.
Exit strategy
The single most important question: how will the bridge be repaid? Refinance evidence (BTL mortgage agreement in principle from a lender who will consider post-bankruptcy directors) or sale evidence (comparable sold prices) is expected.
What happened and what has changed
Context matters to specialist lenders. A business failure from which the director has recovered — now with a trading company, investment property, and a clear plan — is viewed very differently to a pattern of unresolved financial difficulty.
This service is for UK limited companies and LLPs borrowing for business purposes, secured against investment or commercial property. We do not arrange regulated residential mortgages for individuals.