Personal guarantee of company debt
This personal guarantee is the equivalent of the "PG" your bank might ask you to sign when storm clouds gather around your company. It is for use in any situation requiring an individual to guarantee the debt of a company, but most usually when the guarantor is a director. It is applicable to any situation where money is owed, and suitable for use by the lender or the guarantor as it provides a wide range of options to produce a final version with a high or a very high level of lender security.
- 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.
What other customers thought
Average customer rating
By Bryce Clark 06 December 2013
The document was just what I needed and as it was the only one I needed I was very pleased to be able to buy it without having to acquire a suite of documents I did not need.The advice that came with the document was excellent and very helpful in tailoring it to my needs.
I will definitely look to using the service again.
"I have used you in the past and am always impressed!"Diane Bantten (Acquit Debt Recovery)
"Great to be able to download and use a variety of legal documents for all types of lettings."Christopher st james
"I needed an Agreement and Google, as always, was where I headed. I found the Net Lawman site and initially I thought I needed a relationship type Agreement but the Lodger one was absolutely perfect.
I didn't think it would be so easy so would recommend your website to anybody who was looking for an Agreement to suit their needs."Wendy Auger