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Definition
Under joint and several liability, each of several borrowers or guarantors is individually responsible for the full debt. The lender can recover the whole amount from any one of them, who must then seek contribution from the others.
In plain terms
If three directors give a joint and several guarantee, the lender can pursue any one of them for 100% — not a neat third each.
Why it matters for your company
It significantly raises personal exposure under guarantees. Credicorp’s core business loans take no personal guarantee, avoiding this risk entirely. See personal guarantee.
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Guarantee
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A guarantor is a person or company that agrees to repay a debt if the original borrower fails to. Credicorp…
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Subrogation
Subrogation lets a guarantor or insurer who has paid out step into the creditor's position and recover from…
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.