2 min read
Definition
Personal liability is the risk that a director must meet a company debt from their own money. Limited liability normally prevents this, but a personal guarantee deliberately creates it for a specific debt.
Why it matters
Avoiding personal liability is a core reason to borrow through the company without a guarantee. See no-PG loans and personal guarantees explained.
Related reading
Limited liability
The protection incorporation gives a company's owners, capping their personal loss at what they invested if…
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Personal guarantee
A personal guarantee is a director's legally binding promise to repay a company's debt from their own money…
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Business loans with no personal guarantee
A no-personal-guarantee loan lets a limited company borrow without a director signing away their own assets…
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Personal guarantees explained: the risk directors sign
A personal guarantee is the most consequential thing a director can sign. It makes you personally liable for…
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.