Worried about personal guarantees? Here’s how to secure business funding without putting your personal assets on the line.
It’s one of the most frequently asked questions — and rightly so. A personal guarantee (PG) means that, as a company director or shareholder, you assume personal responsibility for a business loan if your company cannot repay it. But is it possible to secure funding without one?
A PG is a contractual commitment that makes you personally liable if your business defaults on a loan. For many lenders, this adds a layer of security, especially when lending to SMEs, new ventures, or in unsecured arrangements.
Yes — in certain circumstances. Below are scenarios where a PG might not be required:
● Asset-Based Lending
Where the finance is secured against tangible assets such as vehicles, machinery, or receivables.
● Strong Business Profile
Companies with solid trading history, strong profitability, and clean credit profiles may be eligible for PG-free facilities.
● Government-Backed Schemes
Some government lending schemes offer partial or full guarantees, removing or reducing the need for a personal guarantee.
● Capped Guarantees
It may be possible to negotiate a limit on your personal liability.
● PG Insurance
Some directors opt to insure their personal guarantee exposure to mitigate risk.
● Shared Guarantees
In businesses with multiple directors, the risk can sometimes be spread through joint guarantees.
Our team works with a broad panel of lenders, including those open to non-PG or limited-PG arrangements. If you're concerned about personal liability but still need access to funding, we can help structure a facility that aligns with your risk appetite and growth plans.
Need guidance? Speak to our team today — the right finance exists, and we’re here to help you access it on your terms.
