Can a lender register a charge without a personal guarantee?

Yes — a charge secures the loan against company assets, while a personal guarantee secures it against you. They are separate things: a lender can take one, both, or neither. A charge alone leaves your personal assets untouched. A debenture or fixed charge gives the lender a claim over company assets if the company defaults. A personal guarantee gives the lender a claim over you. A lender can register a charge and still take no personal guarantee.

Can a lender register a charge without a

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ChargeAgainst the company

GuaranteeAgainst you

SeparateTake one or both

Charge vs guarantee

A debenture or fixed charge gives the lender a claim over company assets if the company defaults. A personal guarantee gives the lender a claim over you. A lender can register a charge and still take no personal guarantee.

What a charge means for the director

If the company defaults, a secured lender can recover from the charged assets before unsecured creditors. But your personal home and savings are outside a company charge. Read secured vs unsecured to see how the trade-off works.

What it means for you

Credicorp lends to your company, not to you personally, and takes no personal guarantee. Credicorp’s unsecured lending takes neither a personal guarantee nor a debenture on the standard product. See business loans or apply online.

Frequently asked questions

Is a debenture the same as a personal guarantee?

No. A debenture is security over company assets; a personal guarantee is a promise from you personally. A lender can hold a debenture without any personal guarantee.

Does a charge put my house at risk?

A company charge covers company assets, not your home. Only a personal guarantee or a charge you sign over a personal asset would reach your house.