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Director personal guarantees



Sun 10 December 2023 Director personal guarantees

It is very common for company directors to be asked to give a personal guarantee. This is because lenders and other creditors may want to ensure that they have someone to turn to if the company fails to repay its debts.

Directors are most likely to be asked to give a personal guarantee when :-

What can directors do to protect themselves when they give a personal guarantee?

There are a few things that directors can do to protect themselves from personal liability :-

Director Personal Guarantee Insurance

The cost of  insurance will vary depending on a number of factors, including the director’s personal financial circumstances, the size and turnover of the company, and the amount of the personal guarantee. However, it is generally a relatively affordable type of insurance.

There are a few drawbacks to Director Guarantee insurance, including:

Alternative options instead of Director Personal Guarantee?

All alternatives, where possible, also have pros and cons. Options may include :-


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