personal guarantee protection
what is a personal guarantee?
When companies take on debt, the directors and shareholders may have to sign a personal guarantee. This may mean that your client’s personal assets are on the line should the company become insolvent as it is a legally binding agreement. As a business owner, your client may not have wanted to sign the guarantee, but needs must when they need the money.
what are the risks?
Personal responsibility for the debt, loss of personal assets including the family home and potentially bankruptcy. In a nutshell, significant.
what is personal guarantee insurance?
Personal Guarantee insurance is designed to give your client the confidence to take out borrowing to grow whilst ring fencing their personal assets. It covers secured or unsecured debts if the business goes insolvent.
case studies...
Personal guarantee insurance for manufacturer
Our client was in the process of taking out commercial finance but was concerned by the personal guarantee he was being asked to sign.