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What is a personal guarantee and do lenders actually call them in?

A personal guarantee is a contract between a creditor, usually a lender, and an individual, normally a director or shareholder of a company.

After building a business over many years it could just take six weeks to lose the lot if you have signed a Personal Guarantee.

Stealing probably isn't the best option but when seeking funding for your business, be sure that no one steals from you.  Get the best deal for your business by knowing what you want and what is available.

Running you own business can be intensely satisfying, rewarding and frustrating at the same time.  What I want as a director/owner is to be able to take advantage of opportunities as they arise.  Opportunities wear many masks and require different tools to unlock their potential.  I have probably been in the same position as you will have been.  I know I am likely to be in the same positions again. 

What is a Directors' Personal Guarantee?

Director’s personal guarantees are a measure of security used by lenders to protect themselves when providing business finance. When directors seek funding for their business and sign a ‘personal guarantee’, it is a legally binding waiver that bypasses the limited liability status of a limited company during debt recovery. What this means is that should the business default on the finance terms, the personal guarantee will entitle the lender to recover any amount owing from the directors’ personal estate.