2 min read
Definition
A personal guarantee (PG) is a legally binding promise by a director (or another individual) to repay a company's debt personally if the company defaults. It effectively sets aside the limited-liability protection of incorporation for that debt, potentially putting the guarantor's savings and even home at risk. Lenders use PGs to add security; many 'unsecured' company loans still require one.
You can sometimes negotiate a PG down — capped, shared or released over time — or avoid it by borrowing from a lender that does not require one. See no personal guarantee loans and alternatives to a personal guarantee. Credicorp lends to the company with no PG.
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Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.