2 min read
How liability works
A company loan is the company's debt. Directors become personally liable only through a personal guarantee. Where several directors guarantee a loan, they can each be liable, frequently on a joint-and-several basis — meaning the lender can pursue any one for the whole amount.
The cleaner route
Borrowing with no personal guarantee keeps every director's personal assets out of it. That is the Credicorp model. See am I personally liable.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.
Frequently asked questions
Are all directors liable for a company loan?
Not unless they have given a personal guarantee. Without one, the company alone is liable. Where directors guarantee a loan, each guarantor can be liable, often jointly and severally.
What does joint and several liability mean?
That the lender can pursue any one guarantor for the full debt, not just their share. It is common with multiple personal guarantees, which is a strong reason to prefer no-PG borrowing.
Related reading
Am I personally liable for a company loan?
Generally no — limited liability means the company, not you personally, owes the debt, unless you have signed…
Read →
Does a business loan need a personal guarantee?
It depends on the lender — many require a personal guarantee, but not all do. A personal guarantee makes you…
Read →
What happens if my company cannot repay a loan?
If the company cannot repay and there is no personal guarantee, the lender's recourse is to the business, not…
Read →
Am I liable for company debts as a non-executive director?
A non-executive director has the same protection from company debts as any director — you are not personally…
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.