Does a business loan need a personal guarantee?

2 min read

VariesBy lender

PG = personal riskYour assets on the line

No PGCompany-only borrowing

What a personal guarantee does

A personal guarantee is a promise that, if the company cannot repay, you will — from your own money, and sometimes your home. It turns a company loan into a personal liability, which is a much bigger commitment than many directors realise.

How no-PG lending differs

A no-personal-guarantee loan is made to the company and assessed on the company's cash flow and record. If the business hits trouble, the lender's recourse is to the business, not to you. Read no personal guarantee loans.

What it means for you

Always check whether a personal guarantee is required before you sign. Credicorp takes no personal guarantee — ever. See business loans or apply online.

Frequently asked questions

Is a personal guarantee the same as security over company assets?

No. Security is a claim over company assets; a personal guarantee is a claim over your personal assets. A loan can be secured on the business yet still take no personal guarantee — as Credicorp's does not.

Can I get a business loan without a personal guarantee?

Yes. Credicorp lends to UK limited companies with no personal guarantee, assessing the company on its cash flow and record rather than your personal finances.