Limited permission is the FCA's lighter-touch form of consumer credit authorisation, designed for businesses whose main trade isn't finance. If you sell goods or services and offer finance on the side, it's almost certainly the route that applies to you — here's what it does and doesn't let you do.
What limited permission is
The FCA splits consumer credit authorisation into two tiers: limited permission and full permission. Limited permission covers lower-risk credit activities, typically carried on as a secondary part of a business whose main activity is selling its own goods or services. Because the risk is lower, the application is lighter, the FCA fee is smaller, and the ongoing obligations are more proportionate.
What you can do under limited permission
For a typical business, limited permission generally covers:
- Secondary credit broking — introducing your customers to a lender so they can finance the goods or services you sell (the classic dealer, clinic, retailer or installer case);
- Consumer hire arrangements, in some circumstances, where they're secondary to your main business;
- Not-for-profit debt counselling or debt adjusting, for organisations that provide it.
For most firms reading this, it's the first one — secondary credit broking — that matters.
What you can't do under limited permission
Limited permission is not a licence for credit as a business in its own right. Activities that generally require full permission include:
- Lending your own money to consumers;
- Credit broking as your main business, rather than secondary to selling goods or services;
- Debt collecting, debt administration, or debt counselling on a commercial basis;
- Operating a peer-to-peer lending platform.
If any of these describe you, limited permission won't be enough — and our fixed-fee service is built for the limited-permission case rather than these.
The lighter senior-manager rules
Limited-permission firms fall under the "limited scope" version of the Senior Managers and Certification Regime. In practice that usually means appointing one senior manager to hold the relevant function, without the heavier set of responsibilities full-scope firms carry. It's lighter, but it's not nothing — someone needs to own compliance.
How to know if you qualify
If finance is secondary to your main trade and you're introducing customers to a lender, limited permission is very likely your route. To check quickly, use the free eligibility checker, or read do I need an FCA licence to offer finance? for the fuller picture.
Frequently asked questions
- Is limited permission cheaper and faster than full permission?
Generally yes. The FCA's application fee is lower, the application is lighter, and lower-risk limited-permission cases are usually assessed more quickly — though the FCA never guarantees a timeline.
- Do I need a senior manager under limited permission?
Most limited-permission firms need to appoint someone to hold the relevant senior-management function under the regime's limited-scope rules. A sole trader with no employees may not need to — it depends on your structure.
- Can I lend my own money under limited permission?
No. Lending your own money to consumers is a higher-risk activity that requires full permission, not limited permission.
- How do I know if I qualify for limited rather than full permission?
If offering finance is secondary to your main trade and you introduce customers to a third-party lender, limited permission is very likely the right route. If credit is your main business, you'll probably need full permission — the eligibility checker gives you a quick read.
This article is general information to help you understand the process, and is not legal or regulatory advice. CreditLicence is a regulatory consultancy; it is not authorised or regulated by the Financial Conduct Authority, nothing it provides is regulated advice, and it is not affiliated with, endorsed by, or acting on behalf of the FCA. FCA rules can change; always check the FCA's website for the current position.