Whit is a personal guarantee — an why we dinna tak ane

Summary: a personal guarantee is a separate, legally bindin promise bi an individual — usually a director — tae pey back the company's debt gin the company canna. It opens the director's personal assets tae risk.

Why we dinna tak ane

We dinna tak a personal guarantee. We lend tae yer company, the company is the borraer, an the company is liable for the debt. Gin the company canna pey back, we pursue the company — no ye personally. We assess affordabilitie on the company itsel.

Whit this means for directors

Acause there's nae personal guarantee, a director's personal assets arena on the line for this lendin, an we dinna record the lendin on yer personal consumer credit file. The figures ye will pey back are set oot in full on yer Key Information Sheet (KIS) an in the Business Loan Agreement afore ye sign.

Scots summary — the hale English version o this airticle is the authoritative ane. Read the hale airticle in English