It can take years of hard work to build a successful business, and so exiting that business can be a very difficult decision for an owner to make. For others who have an exit strategy in place finding a buyer may be difficult, particularly in certain...
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.