Personal guarantee of company debt
- Solicitor approved
- Plain English makes editing easy
- Guidance notes included
- Money back guarantee
About this document
This is a professionally drawn personal guarantee agreement for a lender to put to a company director as a condition of either increased lending or forbearance in enforcement of existing loan conditions. First, it identifies an original loan agreement between the lender and the company, then ties the guarantor to it, to “stand in the shoes” of the company in the event that it was unable to make repayment when due.
The agreement provides many options primarily to strengthen the position of the lender. Some could be deleted so as to provide a softer agreement for the guarantor if required.
The law in this document
There is no modern statutory law relating to guarantees. This document is based on contract common law.
Net Lawman also offers other document templates relating to guarantees and indemnities.
Agreement features and contents
- The key benefit of using this document over adding a guarantee paragraph to the original contract is the simplicity of use. There is no need to edit and agree the original contract. That means less room for making a mistake and invalidating some provision of it.
- Provides heavyweight protection for the lender.
- The document highlights the continuing liability of the guarantor (usually the director who is personally liable for the company debt).
This document was written by a solicitor for Net Lawman. It complies with current English law.
"I have used you in the past and am always impressed!"Diane Bantten (Acquit Debt Recovery)
"We are a small UK business who can not afford our costs to get out of control. NetLawman is a great option for young small businesses."CCF(Automotive) Training & Consultancy Ltd.
"Thanks very much! I found your website Netlawman very usefull. I am sure to recommend your website to others as well. And I will in the future use other documents. Cheers"Dr. Vidya Chakravarthy