2 min read
Definition
A personal guarantee cap is a contractual limit on the maximum amount a guarantor can be required to pay under a personal guarantee, capping the personal liability rather than leaving it open-ended.
In plain terms
If you must sign a guarantee, a cap at least fixes the worst case. But a capped guarantee is still personal risk — the best cap is not signing one at all.
Why it matters for your company
Negotiating a cap helps if a guarantee is unavoidable, but the cleaner route is a lender that requires none. Credicorp takes no personal guarantee. See how to avoid personal guarantees.
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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.