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Should you make a commercial credit application with a personal guarantee?

Posted by Todd Davison on Oct 11, 2019 9:16:33 AM
  • When making a commercial credit application, in order to inject funds into your business, there’s every chance that you’ll be required to provide a personal guarantee. If you’ve never been through the process before you may be unaware of the implications of doing so and therefore unable to make an informed decision.

    By the end of this article, you’ll understand what it means to sign a personal guarantee, why lenders require it and how you can mitigate your risk.

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Topics: #pgi, #personalguarantee, #personalguaranteeinsurance, #commercial guarantee, #commercial finance, #bankruptcy

What does signing a personal guarantee mean for small business owners?

Posted by Todd Davison on Feb 15, 2019 4:00:03 PM

Are you one of the millions of small business owners who have secured a loan against their own bricks and mortar without realising the implications?

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Topics: #pgi, #personalguarantee, #personalguaranteeinsurance, #commercial guarantee, #commercial finance

How can a small business owner cut the risk of a personal guarantee before and after signing?

Posted by Todd Davison on Aug 8, 2018 7:13:20 PM

Most small business owners would prefer not to sign a personal guarantee, but when it makes the difference between securing finance and having the door shut in your face what’s a small business owner to do?

If signing the guarantee is the only route to finance, the first priority for any savvy small business owner is a thorough check on what they’re potentially getting into.  Even a thriving business can go through uncertain times and if things do go wrong, that guarantee could mean loss of personal assets including home, possible bankruptcy, tarnished credit rating and damaged future career, not to mention a severe strain on family relationships.

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Topics: #pgi, #personalguarantee, #personalguaranteeinsurance, #commercial guarantee, #commercial finance

Six Weeks to Lose it ...

Posted by Dean Cox on Jul 23, 2018 5:21:00 PM

After building a business over many years it could just take six weeks to lose the lot if you have signed a Personal Guarantee.

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Topics: #pgi, #personalguarantee, #personalguaranteeinsurance, #commercial guarantee, #commercial finance

Can Signing a Personal Guarantee Lead to Bankruptcy?

Posted by Dean Cox on Jul 19, 2018 3:41:00 PM

Bankruptcy and Personal Guarantees

If a bank or financial lender has obtained your Personal Guarantee in support of a business loan they will look to enforce that guarantee against you if your company fails to make payment. Rather than simply commencing a monetary claim against the Personal Guarantor, it may be more cost effective for the lender to commence bankruptcy proceedings against the Guarantor.

Bankruptcy proceedings are only appropriate if the debt is admitted, or not capable of being disputed in any way. If the debt is greater than £750 a lender can issue a bankruptcy petition against the Personal Guarantor.

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Topics: #pgi, #personalguarantee, #personalguaranteeinsurance, #commercial guarantee, #commercial finance, #bankruptcy

Find out what UK directors understand about personal guarantees

  • Do 99% of UK directors really know what is being placed at risk when signing a personal guarantee?
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