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Looking for business finance without signing a personal guarantee? We can help eligible UK businesses explore funding options where a director’s personal guarantee may not be required. Funding can be used for working capital, tax, stock, equipment, expansion and other business purposes, subject to lender criteria.
A personal guarantee isn’t always required for business finance. Depending on your business, financial position and funding requirement, we can explore finance options where a director’s personal guarantee may not be required.
Funding to support cash flow, wages, suppliers and the day-to-day costs of running your business.
Explore funding to help manage eligible Corporation Tax and VAT liabilities while protecting business cash flow.
Finance to purchase stock, materials and supplies while retaining working capital within the business.
Funding to support expansion, new locations, increased capacity and other business growth opportunities.
Finance for equipment, technology and other investment without using available cash reserves.
Additional funding to support recruitment, onboarding and the cost of expanding your team.
Finance to support marketing, customer acquisition, digital projects and other business investment.
Funding may be available for a range of legitimate business purposes, subject to lender criteria.
Prefer to talk? Contact us today on 01908 880420
For eligible UK businesses, finance without a personal guarantee can provide access to funding while reducing the need for directors to provide a personal commitment to repay the borrowing.
Eligible funding options may be available without requiring a director to provide a personal guarantee for the borrowing.
Without a personal guarantee, directors may reduce their personal exposure to the company’s borrowing, subject to the terms of the facility.
No-PG funding is generally aimed at established businesses that can demonstrate sufficient financial strength and affordability.
Lenders can assess factors such as trading history, turnover, profitability, cash flow and the overall financial strength of the business.
Depending on your circumstances, different types of business finance may be available without a personal guarantee.
We can explore suitable funding options from across our extensive panel of UK lenders rather than restricting your enquiry to a single provider.
Accessing business finance doesn’t need to be complicated or time-consuming. We put you in front of multiple lenders to bring you fast, flexible solutions that meet your finance needs.
Submit basic information about your business and your requirements, you can do this either online or by calling us on 01908 880420.
Once you have accepted, and completed the paperwork of your preferred offer, funds can potentially be with you on the same day (subject to lender and product).
Prefer to talk? Contact us today on 01908 880420
A no personal guarantee business loan is business finance where a director or business owner is not required to provide a personal guarantee as part of the lending agreement.
A personal guarantee is a separate legal commitment under which an individual agrees to become personally responsible for repayment if the business cannot meet its obligations. This can potentially expose the guarantor’s personal assets if the guarantee is enforced.
With business finance that does not require a personal guarantee, the lender instead assesses the business and the structure of the facility to determine whether it is prepared to provide funding without that additional personal commitment.
Importantly, no personal guarantee does not necessarily mean no security. A lender may require security from the company, such as a debenture or charge over eligible business assets. The exact requirements depend on the lender, product and circumstances of the application.
All finance is subject to application, lender criteria and approval.
Yes, business finance without a personal guarantee is available in the UK, although it will not be suitable or available for every business.
Many business lenders use personal guarantees to reduce their risk, particularly when lending to limited companies. However, some lenders and funding structures can consider applications without requiring directors to provide a personal guarantee.
Availability will depend on factors such as the financial strength of the business, trading history, turnover, profitability, cash flow, existing borrowing, credit profile, amount required and the purpose of the funding.
Some facilities may also require company-level security instead of a personal guarantee. For example, a lender may take a debenture over the company or security over particular business assets.
The Funding Store can explore options from across our panel of UK lenders to identify whether finance without a personal guarantee may be available for your business.
A business loan without a personal guarantee is still borrowing by the business and must be repaid in accordance with the agreed terms.
The key difference is how the lender manages its risk. Rather than relying on a director’s personal promise to repay the debt if the company cannot, the lender may place greater emphasis on the strength of the business itself and, depending on the facility, may require security from the company.
The lender assesses the amount required, purpose of the funding and financial position of the business.
The lender may review accounts, business bank statements, turnover, profitability, cash flow, existing commitments, credit information and trading history.
Where no personal guarantee is required, the lender may still require other forms of security. This could include a debenture or security over eligible company assets, depending on the facility.
If approved, the lender will set out the amount, term, repayments, costs, security requirements and other conditions of the facility.
The absence of a personal guarantee does not remove the company’s obligation to repay the finance or comply with the lending agreement.
Eligibility varies significantly between lenders. No-PG funding is generally more dependent on the strength of the borrowing business because the lender does not have the additional protection of a director’s personal guarantee.
A lender may consider factors including:
Meeting some or all of these factors does not guarantee acceptance. Every application remains subject to the individual lender’s criteria, underwriting and approval.
When a director is not providing a personal guarantee, lenders need to be comfortable that the business itself represents an acceptable lending risk.
They may therefore place greater emphasis on the company’s financial performance, trading history, cash flow and ability to meet repayments.
Accounts and management information can help a lender understand turnover, profitability, balance-sheet strength and the overall financial position of the company.
Business bank statements can provide an up-to-date picture of income, expenditure, existing commitments and account conduct.
Lenders may consider the credit history of the business and, depending on their process, information relating to directors and other connected parties.
Some lenders may be prepared to lend without a personal guarantee where suitable company-level security is available. This could include a debenture or security over particular business assets.
The lender will also want to understand why the finance is required and whether the business can reasonably support the proposed repayments.
Business finance without a personal guarantee is not limited to one particular type of product. Depending on the business, lender and funding requirement, several structures may potentially be considered.
Some lenders may offer term lending to eligible established businesses without requiring directors to provide a personal guarantee.
Invoice finance uses eligible unpaid invoices to support a funding facility. Security requirements vary between providers and facilities.
Asset finance can help businesses fund eligible equipment, machinery and vehicles. The asset and finance structure can form part of the lender’s security arrangements.
Asset refinance can potentially release capital from eligible assets already owned by the business.
A revolving credit facility can provide flexible access to working capital, although whether a personal guarantee is required will depend on the provider and application.
Not every product or lender offers a no-PG option. Security requirements and eligibility must be assessed for each individual application.
Subject to the lender and product, funding may be available for a wide range of legitimate business purposes.
These can include:
The lender will normally want to understand the purpose of the borrowing as part of its assessment.
An unsecured business loan and a business loan without a personal guarantee are not necessarily the same thing.
The term unsecured business loan generally means that the loan is not secured against a specific asset such as commercial property. However, the lender may still require one or more directors to provide a personal guarantee.
A no personal guarantee business loan specifically means that the lender does not require the relevant director or owner to personally guarantee the company’s borrowing.
Depending on the product, the lender could still take security from the company itself. For example, it may require a debenture over company assets.
This is why it is important to look beyond the word unsecured when comparing business finance. Check both the personal guarantee requirements and any company-level security before entering into an agreement.
Explore our unsecured business loans for more information about unsecured funding.
The terms personal guarantee and secured business loan describe different ways a lender can manage risk.
A personal guarantee creates an obligation for an individual to repay the relevant debt if the business cannot, subject to the terms of the guarantee.
A secured business loan is supported by security over an asset or assets. Depending on the structure, this might include commercial property, other eligible assets or company-level security.
It is therefore possible for business finance to have no personal guarantee while still being secured. Equally, a secured facility may sometimes have additional guarantee requirements.
Always check exactly what security and guarantees apply to the particular facility being considered.
A personal guarantee and a debenture are both mechanisms that can provide additional protection to a lender, but they are fundamentally different.
A personal guarantee is provided by an individual, typically a company director or owner. Subject to the terms of the guarantee, the lender may pursue the guarantor personally if the company cannot meet the guaranteed debt.
A debenture is company-level security. It can create a charge over some or all of the company’s assets and may include fixed and/or floating charges, depending on its terms.
This can give the lender rights over relevant company assets if the business defaults or becomes insolvent. A debenture may also be registered as a charge against the company at Companies House.
Yes, depending on the lender and facility. Some no-PG funding can still require a debenture or another form of company security.
This distinction is crucial: no personal guarantee means the relevant director is not providing that personal guarantee. It does not automatically mean the lender has no security.
Businesses should understand the precise security arrangements and legal implications before entering into a finance agreement and obtain independent professional advice where appropriate.
Where suitable and available, finance without a personal guarantee can offer several potential advantages.
Directors are not providing the particular personal guarantee that would otherwise make them personally responsible for the guaranteed business debt if the company could not repay it.
The facility can be structured around the borrowing company and its financial position rather than relying on a director’s personal guarantee.
Some directors may be uncomfortable providing personal guarantees, particularly where the business already has other borrowing supported by guarantees.
Depending on the business and lender, company assets, receivables or other forms of security may provide alternative ways of structuring finance.
These advantages should always be considered alongside the costs, security requirements and other terms of the proposed facility.
Removing a personal guarantee does not remove the lender’s need to manage risk. As a result, no-PG finance can involve different eligibility requirements, pricing, security or facility terms.
Potential considerations can include:
A no-PG facility should therefore be compared on its overall terms, rather than simply on the absence of a personal guarantee.
No, obtaining conventional business borrowing without a personal guarantee can be more challenging for a start-up or recently established company.
A new business has less trading history and financial evidence for a lender to assess. As a result, lenders may seek additional reassurance through a personal guarantee, security or a different funding structure.
That does not mean every start-up has the same options. Availability will depend on the business, funding requirement, assets, owners and the particular lender or product.
Other forms of business finance may still be worth exploring.
Corporation Tax and VAT payments can create significant demands on working capital, particularly when substantial liabilities fall due at the same time as other business expenditure.
Depending on the business and lender, funding may be available to help meet eligible Corporation Tax or VAT liabilities without requiring a director’s personal guarantee.
This can allow an eligible business to spread the cost over agreed repayments rather than meeting the entire liability from available cash at once.
No-PG tax funding is not available in every circumstance. The lender will assess the business, affordability and funding requirement, and may require company-level security such as a debenture or other security depending on the facility.
All funding remains subject to application, lender criteria and approval.
There is no single borrowing limit that applies to every business loan without a personal guarantee.
The amount available will depend on the lender and product together with factors such as:
A stronger and more established business may have access to different funding options than a smaller or recently established company.
The Funding Store can assess your requirements and explore appropriate options from across our lender panel.
Timescales vary according to the lender, type of finance, amount required and complexity of the application.
A straightforward application with the required financial information available may progress relatively quickly. Applications involving larger amounts, detailed underwriting, a debenture or other company security can require additional checks and documentation.
Providing complete and accurate information at the outset can help avoid unnecessary delays.
Your dedicated account manager will explain what information is required and help coordinate the application through to completion.
A business loan without a personal guarantee is still a legally binding financial obligation of the borrowing business.
If repayments are missed or the company breaches the terms of its finance agreement, the lender may take action in accordance with the facility documentation.
Where the lender holds company-level security, such as a debenture or charge over specific assets, it may have rights to enforce that security in the circumstances set out in the agreement.
The absence of a personal guarantee therefore should not be interpreted as meaning there are no consequences if the business cannot repay.
If a business is experiencing financial difficulty, it should engage with its lender promptly and consider obtaining appropriate independent professional advice.
Applying through The Funding Store starts with understanding your business, how much you need and what the funding will be used for.
Provide details about your business, funding requirement and the amount you would like to raise.
Make it clear that obtaining finance without a director’s personal guarantee is important to you so this can be considered when exploring potential lenders and products.
Depending on the lender, you may be asked for business bank statements, accounts, management information and details of existing borrowing.
Where suitable options are available, we can explain the proposed amount, term, repayments and any security requirements associated with the facility.
Before proceeding, check whether a personal guarantee is required and understand any debenture, asset security or other conditions attached to the finance.
Ready to explore your options? Start your application or call us on 01908 880420.
If finance without a personal guarantee is not available, it does not necessarily mean the business has no funding options.
Depending on your circumstances, alternatives could include:
An unsecured business loan supported by a director’s personal guarantee may provide access to lenders that would not otherwise consider the application.
A secured business loan can use eligible security to support the borrowing and may be suitable for larger or more complex funding requirements.
Asset finance can fund eligible new assets, while asset refinance can potentially release capital from assets already owned by the business.
Businesses selling to other businesses on credit terms may be able to use invoice finance to release working capital from eligible unpaid invoices.
A revolving credit facility may provide flexible access to working capital, subject to lender criteria and any applicable guarantee or security requirements.
The appropriate option will depend on your business, the amount required, the purpose of the funding and the level of security or personal commitment you are comfortable providing.
One of the most important things to understand about no-PG business finance is that no personal guarantee does not automatically mean no security. Depending on the lender and facility, security could include:
The key distinction: a personal guarantee creates a personal commitment from the relevant director or owner. A debenture or other company-level security relates to the business and its assets. A lender may therefore provide finance without a personal guarantee while still taking security from the company.
Security requirements vary by lender and facility. All funding is subject to application, lender criteria and approval.
A business loan with no personal guarantee is business finance where the relevant director or business owner is not required to personally guarantee repayment of the facility. The borrowing remains an obligation of the business, and other forms of company-level security may still be required.
Yes. Business finance without a personal guarantee may be available to eligible established UK businesses. Availability will depend on the lender, product, financial position of the business, affordability and funding requirement. All finance is subject to lender criteria and approval.
No. No personal guarantee does not necessarily mean no security. A lender may still require company-level security, such as a debenture, security over particular business assets or other security appropriate to the facility.
No. An unsecured business loan does not necessarily mean that no personal guarantee is required. A lender offering an unsecured business loan may still ask a director or business owner to provide a personal guarantee.
A no-PG business loan specifically refers to finance where the relevant director or owner is not required to provide that personal guarantee.
A personal guarantee creates a personal commitment from the relevant director or business owner in relation to the company’s borrowing. A debenture is company-level security and can give a lender security rights over company assets.
Depending on the facility, a lender may therefore take a debenture or other company-level security without requiring a personal guarantee.
No-PG business finance is generally available to established businesses that meet the relevant lender’s criteria. Lenders may consider factors such as trading history, turnover, profitability, cash flow, existing borrowing, credit profile, affordability, funding purpose and available company-level security.
Meeting particular criteria does not guarantee acceptance.
No. The no personal guarantee business finance options available through The Funding Store are for established businesses that meet the relevant lender’s eligibility criteria.
Start-ups and newly established businesses will need to consider alternative funding options, which may include facilities requiring a personal guarantee or another form of security. All funding remains subject to lender criteria and approval.
There is no single borrowing limit for all no-PG business finance. The amount available will depend on the lender and product, together with factors such as turnover, profitability, cash flow, trading history, existing commitments, affordability, funding purpose and any company-level security available.
Depending on the lender and product, funding may be available for working capital, stock, equipment, recruitment, marketing, business expansion, Corporation Tax, VAT and other eligible business expenditure.
The permitted use of funds will depend on the particular facility and lender criteria.
The company remains responsible for repaying the borrowing. If the business defaults or breaches the finance agreement, the lender may take action in accordance with the facility terms.
Where company-level security has been provided, the lender may have rights to enforce that security. The absence of a personal guarantee does not mean there are no consequences if the business cannot repay.
A personal guarantee can provide a lender with additional protection by creating a personal commitment from the relevant director or business owner if the company cannot meet its obligations.
Whether a personal guarantee is required will depend on factors including the lender, type of finance, business circumstances, amount being borrowed and available security.
You can apply through The Funding Store and tell us that avoiding a personal guarantee is important to you. We can review your funding requirement and explore potentially suitable options from our lender panel.
Any finance offered remains subject to lender criteria, underwriting and approval. You should also understand any company-level security requirements and the terms of the facility before proceeding.
Looking for business finance without a personal guarantee? The Funding Store can help established UK businesses explore funding options where a director’s personal guarantee may not be required.
Whether you need funding for working capital, Corporation Tax or VAT, stock, equipment, recruitment, expansion or other business purposes, we can explore suitable options based on your requirements and circumstances.
Complete our quick form and a dedicated account manager will review your requirements and discuss the funding options potentially available to your business.
Depending on the lender and facility, company-level security may still be required, such as a debenture, security over business assets or other appropriate security. No personal guarantee does not necessarily mean no security.
All funding is subject to application, lender criteria, underwriting and approval. The amount, terms and security requirements will depend on your business and the finance product available.
