Does no personal guarantee mean I can walk away from a business loan?

No personal guarantee means the lender cannot come after your personal assets to recover the loan — the debt sits with the company. It does not license reckless trading: wrongful or fraudulent trading, or an unlawful director's loan, can still expose you personally. A no-personal-guarantee loan means the company is the borrower and the company alone is liable. If the business cannot pay, the lender pursues the company, not your house or savings. That is the whole point of borrowing through a limited company.

Does no personal guarantee mean I can walk away

2 min read

CompanyHolds the debt

Your homeNot at risk

MisconductStill personal

What the protection covers

A no-personal-guarantee loan means the company is the borrower and the company alone is liable. If the business cannot pay, the lender pursues the company, not your house or savings. That is the whole point of borrowing through a limited company.

Where a director can still be pursued

Limited liability is not a shield for misconduct. Trading while insolvent, taking money out through an overdrawn director’s loan account, or fraudulent trading can all pierce the veil. Paying yourself ahead of creditors near insolvency is a common trap.

What it means for you

Credicorp lends to your company, not to you personally, and takes no personal guarantee. So the debt stays with the company as long as you run it properly. See business loans or apply online.

Frequently asked questions

If the company folds, do I have to repay a no-PG loan personally?

No. Without a personal guarantee the lender has no claim on your personal assets. The debt is written against the company. The exception is director misconduct such as wrongful trading or an unlawful loan to yourself.

Does Credicorp take a personal guarantee?

No. Credicorp lends to your company with no personal guarantee, so your home and personal savings are not on the line for the loan itself.