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What Is a Personal Guarantee?

Outlining why you might be asked for a personal guarantee and the purpose it serves.

A personal guarantee is like a powerful handshake in the world of business. It's when an individual – often a director or partner – steps up and legally pledges to take on the credit responsibility of the business.

Imagine it as a safety net, where if the business ever finds itself in a financial twist, this individual steps in to ensure that the debt is repaid, with the promise of their own resources. This act provides lenders with an added layer of assurance, making sure that the financial journey remains secure.

Speak to our friendly team of business finance experts to learn more.