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Guides · UK limited companies
Personal Guarantees on Business Loans
A personal guarantee is a legally binding promise by a director or other guarantor to repay specified company debt if the company does not.
NBS Finance is a broker and introducer, not a lender. An enquiry does not guarantee an offer.
Read the guarantee as a separate personal obligation
A personal guarantee can make the signatory personally liable if the company fails to meet the covered obligations. Limited-company status does not remove a guarantee voluntarily given. This is general information, not advice on a particular document; obtain independent legal advice before signing.
| Feature | Question |
|---|---|
| Cap and additional amounts | Is liability limited, and do interest, enforcement costs or indemnities fall inside or outside the stated cap? |
| Scope and duration | Does it cover one facility or wider/current/future obligations, and is it continuing? |
| Multiple guarantors | Does joint-and-several wording allow a claim against one person for the covered amount rather than an equal share? |
| Security | Is separate security requested, and which personal assets or interests could be affected? |
| Default and enforcement | Which events permit demand, what notice applies and what liabilities can be claimed? Do not assume all company assets must be exhausted first. |
| Release | What written lender release is required on repayment, refinance, sale, resignation or a change in the facility? |
Do not assume resigning as a director, selling shares or refinancing automatically releases an existing guarantee. Ask for the lender’s written confirmation and have an adviser check remaining liabilities. For an explanation of director responsibility, read the Insolvency Service personal-guarantee guidance. Individual wording governs the outcome.
Compare unsecured and secured borrowing carefully: “unsecured” does not by itself mean no personal guarantee. Read the credit-check guide for the assessment question.
Quick answer
When this may be worth discussing
Compare how each route works in practice
Check the full cost, obligations and exit position
Provider assessment
Information that helps produce a useful answer
Providers set their own rates, charges, fees, security and terms. Clear evidence helps distinguish a viable route from an unsuitable application.
- Amount and exact purpose
- Timing and repayment source
- Current agreements, assets or debtor evidence relevant to the route
Important:
Read the guarantee, understand any cap and continuing liability, and obtain independent legal advice before signing.
NBS Finance is a broker and introducer, not a lender. NBS does not charge the client a separate broker fee. Providers set costs and terms and may carry out business or director credit checks; ask which searches will be made before a full application. An enquiry does not guarantee an offer.
Guarantee questions
Does company failure cancel the guarantee?
Do not assume so. Obtain prompt independent advice on the document, any demand and the company/personal position.
Will resignation or selling the business release me?
Not automatically. Ask the lender for written release and legal advice on continuing or accrued obligations.
Do co-guarantors always split liability equally?
No. The document may allow wider recovery from one guarantor. Ask an independent adviser about liability and any contribution rights.
Can NBS promise a no-guarantee offer?
No. Provider requirements depend on the case. Review exact written terms before deciding.
Further reading and scope
This page is general commercial-finance information, not legal, tax or accounting advice. Read the relevant official guidance at www.gov.uk.
NBS Finance primarily supports UK limited companies. NBS Finance is not incorporated as a limited company and is not authorised or regulated by the Financial Conduct Authority. Where applicable, NBS works with lenders and intermediaries that are FCA-authorised for their own regulated activities; their status does not make NBS Finance FCA-authorised.
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