Before signing a Personal Guarantee
There is little business finance around today that does not require a personal guarantee and in some instances a lender may even request a charge on a property.
Although the finance is unlikely to be provided without such support there is room to negotiate certain clauses and certainly to limit the extent of your liability.
There are also certain obligations the lender has to a guarantor and in particular to a guarantor who is not involved in the business before signing a personal guarantee.
There are a lot of myths around personal guarantees based on out of date practices, as times have certainly moved on, so it is important to be aware of the way they work at the present time.
If there is one bit of advice that we would give it is to have alternate potential lenders so you are in a better position to negotiate.
If you would like support prior to signing a personal guarantee please do not hesitate to contact us .
But do it at the earliest possible point as waiting to the day you need the monies from the finance to arrive may severely limit your negotiation ability!