PERSONAL GUARANTEES REVIEWED OR DRAFTED
If you have been asked to sign a Personal Guarantee or need one drafting, please contact our expert solicitors. We offer a Free initial consultation and convenient flexible opening times. Tel: 02477 981545
What is a Personal Guarantee?
Essentially it is another level of protection given to a lender when lending to a business. They are common with unsecured loans, overdraft or invoice finance facilities but can also apply to secured loans.
If your business defaults on the loan, then as a director the lender can pursue you in the event of a default. Personal Guarantees can vary in size in that they may cover the full amount or just a portion of it. Before offering personal guarantees, lenders will look at your credit history and assets to ensure that you are “good for the money”.