Personal Guarantee Insurance
What is this and why do I need it?
As a condition of raising business finance, Directors are often required to provide additional security to the lender by signing a Personal Guarantee. By signing a Personal Guarantee, the Director is placing his or her personal estate at risk; if the business fails the lender can seek recoveries from the Director personally.
In most cases, signing a Personal Guarantee can be a key component in securing business finance. Directors are, therefore, willing to provide a Personal Guarantee to secure business finance so their business is able to pursue its growth objectives.
In the unfortunate event, the business becomes insolvent, the lender can call on the Personal Guarantee to recover some of the shortfalls due to the outstanding financial obligations that the business owes to the lender.
Taking out Personal Guarantee Insurance can have significant benefits for Directors and can prevent the loss of personal wealth.
What can Beesure provide?
Personal Guarantee Insurance is available for Personal Guarantees provided against a wide range of business loans:
Where the lender has a charge, debenture or right of title against business assets. Which typically include:
- Asset finance
- Commercial mortgages
- Invoice finance
- Other secured loans
Where the lender does not have a charge, debenture or right or title against business assets. Which typically include:
- Credit cards
- Peer to peer loans
- Short-term working capital loans
- Other unsecured loans
Why is Beesure the right choice?
Beesure is best placed to help clients find the most appropriate level of cover for their needs as well as at competitive rates along with a full service.
Frequently Asked Questions
What if I have more than one guarantor?
Where the personal guarantee has been signed by two or more Directors “jointly & severally” we can include additional Directors on your policy.
Speak to one our team for a free no obligation initial consultation.
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Beesure Limited is authorised and regulated by the Financial Conduct Authority no. 832417.
Beesure Limited is a company registered in England and Wales. Company number: 10551333.
Registered office address: Ground Floor, Rowan House, Hazell Drive, Newport, NP10 8FY.