Finance in Fifteen - Personal Guarantees

Most markets come with plenty of moving parts, and business finance is no different. In this episode, David and Trevor talk through why lenders ask for Personal Guarantees (PGs), what they mean, and how they affect the people signing them.

Like any type of guarantee, the details depend on several important factors. The aim of this episode is to make the topic clearer so business owners understand their obligations before taking on any debt finance.

Some directors see PGs as a high risk, but that is not always the case. David and Trevor look at the mindset behind why lenders ask for this type of guarantee, the reasons lenders rely on them, and what the actual liabilities could be if a business fails.

Legal advice is always recommended, although working with a recognised business finance professional, such as a member of The Guild of Business Finance Professionals, can give business owners the clarity they need before applying for finance. In many cases, a skilled professional can even negotiate the terms of a guarantee when there is a valid reason to do so.

If there are any business owners that require any further information on PGs and their legalities, please contact the show for further support. In addition, legal support is available in conjunction with legal partners Paris Smith.