Personal Guarantee Misconceptions
“But I set up as a limited company to avoid this” “I’ve got young kids, surely they can’t come after the house” “I own it jointly with my partner, so they can’t touch it” “They can’t personally bankrupt me over company debt” “I didn’t borrow it, the company did” “I didn’t sign anything” “The liquidator […]
Navigating Personal Guarantees as a Company Director
Running a UK limited company means enjoying the perks of limited liability—your personal assets are, in theory, off-limits if the business fails. Yet when you sign a personal guarantee, that safety net unravels. Suddenly your home, savings or even future earnings can be pursued to cover corporate debts. Here’s what every director needs to know: […]
Company Liquidation and Personal Guarantees – A Trigger!
Banks and other lenders commonly demand personal guarantees before agreeing to business borrowing. This means the company director who signs the guarantee agrees to become personally liable for the debt should the company be unable to pay it. Whilst a company can make the repayments as and when they are due, therefore servicing the borrowing, […]
Personal Guarantees – A Sobering Reality
Personal guarantees are commonplace in small businesses and are often signed quickly without due consideration as part of the process when securing loans, asset finance, or investment for your company. There are many alternative funding companies out there now alongside the traditional big banks. Trade accounts also often require a personal guarantee for credit. Understanding […]
Case Study: Hospitality Industry Personal Guarantee Claims Settled
In this case study, we examine a situation involving a personal guarantee claim in the hospitality industry which as we all know has been one of the hardest-hit areas in recent years. Case Background: Mr S an experienced head chef started his own restaurant in a small but busy town in 2021. As is common […]
Understanding Personal Guarantees on Trade Accounts – A Closer Look
In the realm of the building trade, personal guarantees on trade accounts are a common yet often misunderstood aspect of business transactions. Builders, electricians, plumbers, and suppliers of kitchen and bathroom fixtures are among the many who frequently encounter these agreements with their suppliers, some of whom are household names. However, what might surprise many […]
All Monies Clause – A cautionary case study
Mr N owned and ran a successful retail business for many years, in 2016 following a health scare and wanting to enjoy more time with his family he sold the business to a friend of the family outright and ceased to be a director, shareholder, or play any part in the running of the business. […]
The Top 10 Fears of UK Business Owners When Facing Liquidation
For many business owners, facing the prospect of liquidating their business is a daunting and distressing experience. Whether due to financial difficulties, market changes, or unforeseen circumstances, the decision to wind up a business can evoke a range of fears and uncertainties. In the context of the United Kingdom, where liquidation processes are governed by […]
Case Study: Farming Personal Guarantee Claim Settled
In this case study, we examine a situation involving a personal guarantee claim in the farming community. Case Background: Mr and Mrs P secured a long-term tenancy on a council-owned dairy farm in 2016. To set up and run the farm they took out a business loan for £175,000. As a condition of the loan, […]
Why Seeking Professional Help When Dealing With Personal Guarantee Claims Is Crucial
In the dynamic world of business, entrepreneurs often find themselves navigating through a multitude of challenges, including financial ones. In some instances, securing a business loan may require the personal guarantee of the business owner. While this may seem like a routine procedure, the implications of a personal guarantee can be far-reaching and potentially devastating […]
