There can be a number of reasons a business may choose to restructure. Including the plan to sell the business , merge, grow, develop into new markets, or prepare for a management buy-out. This could mean that part of the business needs to be transferred...
Stephensons has a team of specialists experienced in the recovery of business debts by way of personal guarantees and have successfully assisted guarantors in reducing their liability. A high percentage of all business loans and banking facilities are now backed up by a personal guarantee.
Advice should always be sought before a personal guarantee is entered into. Our commercial team can provide the advice and practical assistance required before the documents are signed.
It is not only major lenders or financial institutions that are seeking to secure their position by obtaining personal guarantees from directors. The use of personal guarantees is becoming more common with trade bodies. If your business has problems with late payment by limited companies, it may be worthwhile seeking a personal guarantee from its directors. Stephensons have legal expertise in preparing personal guarantees to ensure the agreement is clear and enforceable.