Personal guarantees are also known as PGs.
Directors will be asked to guarantee their company’s debt. If the company defaults on payment, the lender is entitled to pursue the director personally providing the guarantee. In most cases, it does not have to pursue the company first or indeed at all. This can mean that a director is at risk of losing his home and personal assets.
We would strongly advise and would suggest that it is imperative that any director entering into a personal guarantee takes legal advice before entering into such an agreement.
Contact Business Solicitors in Sheffield today
Our commercial solicitors are experienced in not only advising clients on entering into a personal guarantee but what will happen when a lender enforces the personal guarantee. Please email firstname.lastname@example.org or call 0845 225 2635 for more information.