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Cheating the Lender - Nature of Business - trading vs investing

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So looking into registering the Nature of Business for my property corporation, I am coming across a very short list from the Company House:


Section L Real estate activities :

  • 68100 Buying and selling of own real estate
  • 68201 Renting and operating of Housing Association real estate
  • 68202 Letting and operating of conference and exhibition centres
  • 68209 Other letting and operating of own or leased real estate
  • 68310 Real estate agencies
  • 68320 Management of real estate on a fee or contract basis





So essentially whether you are trading properties (buy-refurbish-sell) or investing in property (buy and hold) you will be using code 68100.


My lender is OK to lend to my corporation providing I do not undertake any trading activity and providing the nature of the business of the corporation is only 'investing' and not trading.


But my question is: how can my lender tell if I am trading or investing since the SIC code and registration is the same? Will it be based on financial statement of the corporation or just good faith? Not that I would....but any chance to cheat the lender there? Can I conduct trading and investing with the same corporation without the lender knowing? 



Your advise is welcome.







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