2 min read
What it means
A personal guarantee is a separate promise, signed by a director, to repay the company's borrowing personally if the company defaults. It pierces the limited liability that a company structure normally gives you — the lender can pursue your personal assets, sometimes including your home, up to the guaranteed amount.
What this means for your company
A guarantee is a real personal risk, not a formality. Read the cap, whether it is joint-and-several with co-directors, and how it ends. Consider personal-guarantee insurance if you must give one. Credicorp's core lending takes no personal guarantee at all — the company borrows and the company repays — so your personal finances stay separate.
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
Can I negotiate a personal guarantee?
Often yes. You can push for a lower cap, a time limit, removal once the company hits a milestone, or guarantee insurance. Never assume the first draft is fixed — it is a negotiable term.
Is a personal guarantee ever unavoidable?
Many lenders insist on one for unsecured lending. But not all do. Seeking a no-personal-guarantee lender removes the risk entirely rather than trying to limit it.
Related reading
How does no-personal-guarantee lending actually work?
No-personal-guarantee lending works by making the loan to the limited company itself — a separate legal…
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What is a personal guarantee and do I need one?
A personal guarantee (PG) is a legal promise by a company director to repay a business debt from their own…
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How do I protect my personal assets when borrowing?
Borrow through the limited company, avoid personal guarantees where you can, and keep company and personal…
Read →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…
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.