A personal guarantee is a promise by an individual, usually a company director, to repay a business debt from their own money if the company cannot. It effectively puts personal assets behind a company loan.
Credit Corp's position
Credit Corp does not take personal guarantees from directors or members. We lend to the UK limited company or LLP as a separate legal entity, and the obligation to repay sits with the business itself.
- No director is asked to stand personally behind the borrowing.
- Your home and personal savings are not pledged against a Credit Corp facility.
- The company is the borrower, and the company is responsible for repayment.
Why this matters
Many business lenders require a personal guarantee, which can blur the line between company and personal finances. By not taking one, Credit Corp keeps the borrowing where it belongs, with the business, which respects the limited-liability structure that companies and LLPs are built on.
Credit Corp is an exempt business lender operating outside the FCA consumer-credit regime, so the Financial Ombudsman Service and FSCS do not apply. If another agreement you hold mentions a personal guarantee, read it carefully, as the terms can vary between lenders.
See also: What is an obligor?, What is a guarantor in business lending?, No personal guarantee: what it means for directors.