0800 644 6080
Call FREE from Landline and Mobile
Est. 1989

RBR Video - Directors Personal Guarantees explained

Licensed UK Insolvency Practitioners FREE Meeting for Company Directors

We can help with serious company debts, HMRC and creditor pressure, VAT/PAYE/Tax arrears, cashflow problems and raising finance.

RBR Video - Personal guarantees, what are they and can you get out of them

If you’ve given a personal guarantee as a director in support of a loan or credit application and your business is now facing financial difficulties you may well be worried about the potential consequences. Real Business Rescue experts can answer any questions you might have on the subject and detail the potential options available. Watch the video below for an overview of the key issues relating to director personal guarantees. 

Video transcription

A personal guarantee is a legal contract between a creditor and an individual within a company, used as a security in obtaining some form of financing for the business. Many commercial lenders – such as banks – will require an applicant to enter into a personal guarantee which certifies that they will be held personally liable for any company debts that go unpaid. Personal guarantees are typically used by lenders to minimise risk when lending to companies.

Unfortunately, if your company is entering into liquidation and you're concerned that you won't be able to pay the amount due under a personal guarantee, there are limited options available to you. In liquidation the Court will likely order you to pay the amount due, and if you cannot do so you may have to file for bankruptcy and the creditor may be able to seize property that is listed in the personal guarantee.

If you would like to discuss your personal guarantee concerns, or need help in dealing with a particular creditor regarding a personal guarantee, you should seek advice from a licensed insolvency practitioner. You can do this by contacting us and arranging a free no-obligation consultation at your convenience. 

With 55 offices across the UK, you’re never far away from expert and confidential advice.

FREE Company Director Guide - Download Today Get your FREE copy

FREE Company Director Guide - Download Today

Who we help

  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships

Contact our team

Jonathan Munnery
Andrew MacKenzie
Julie Palmer
Thomas Mckay
Keith Tully
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Our numbers speak for themselves

Number of UK Offices
Directors Helped
Licensed Insolvency Practitioners