If you’re considering lending money as a business, you can’t just start tomorrow. In the UK, you’ll need a money lending licence which is officially issued and regulated by the Financial Conduct Authority (FCA). All applications for lending permissions must go through them.

This licence gives you legal permission to lend money, set repayment terms, and charge interest. Without it, you risk serious penalties, reputational damage, and even being banned from offering financial services.

Why Do You Need a Money Lending Licence?

The purpose of the licence is simple: protect customers and ensure fair lending practices. It prevents predatory behaviour and ensures that only businesses who meet strict standards can operate in the lending market. A FCA licence isn’t just paperwork it’s proof that your business operates legally, ethically, and in line with regulatory expectations.

Who Needs One?

You’ll likely need a money lending licence if your business:

• Offers personal loans or short-term credit
• Provides hire purchase agreements
• Issues payday loans or consumer credit products

If you’re unsure, it’s always best to seek compliance advice before you start. Contact our team by emailing sales@thecomplianceguys.co.uk or call 01792 926 060.