Personal Guarantees


Why (or when) will someone need this service?

 Often, directors or shareholders of a company are called upon by a bank or other lender to personally guarantee the liabilities of their companies under a loan or mortgage arrangement. It is common for the bank to request directors to enter into personal guarantees as an added layer of security against the Company’s borrowings.

 Where a personal guarantee has been entered in to, a bank can demand full repayment from the guarantor in the event of default by the company.

 For a director or shareholder to provide a personal guarantee, a bank or lender will require the guarantor to jump through a number of specified hoops in order to be fully satisfied that the deed of personal guarantee has been validly executed and cannot later be challenged should the guarantor be called upon in the event of default. 

How does the process work and what are the steps?

It is now a common requirement for banks to request directors of a company to enter into a personal guarantee. We advise clients about the potential implications and liabilities associated with entering into a personal guarantee, by undertaking the following:

1. A review of the legal charge and deed of personal guarantee;

2. Providing a written report to you, advising you of the terms of the guarantee;

3. A 15 minute face to face interview confirming you understand the implications and liabilities under the guarantee;

4. Completion of a solicitor’s certificate that legal advice has been provided; and

5. Sending the certificates to the bank or your instructed solicitors acting on behalf of the Company.

Why are Grant Saw best for the job?

 We have experience in dealing with many guarantees required by various banks and lenders and we understand that different lenders will have different requirements. We will seek to understand the particular requirements before providing our report to you and our experience in this field means we have developed very quick turn-around times.

How long does it take?

This depends upon the complexity of the terms in the guarantee and the level of urgency but generally it could be dealt with within 1 week.

Meet the Team

  Leena Patel

    Mario Savvides

    Kush Birdi

Meet the Personal Guarantees team