Have you taken out a loan for your business and had to sign a personal guarantee?
Are you about to take a loan out for your business and will have to sign a personal guarantee?
Signing a personal guarantee is a very important thing to consider because if the business doesn’t repay the loan or finance that you are guaranteeing then you will be personally responsible for the loan and have to repay it. Obviously, every director that takes out a loan for his business fully intends that the business will repay the loan so signing a personal a guarantee shouldn’t be an issue but if you want the extra peace of mind that you won’t be responsible for the loan then it is possible to take out an insurance policy that will repay the loan in the event that the business becomes insolvent and the loan or finance company enforce the personal guarantee.
Personal Guarantee Insurance protects your personal assets if your business faces insolvency. We have partnered with Purbeck Insurance Services, a specialist in this field to provide you with a solution which protects your home, savings and pension if your lender calls in a personal guarantee.
The key features of the insurance include:
- Cover up to 80% of your guarantee
- Maximum level of £550,000 for secured loans & £400,000 for unsecured loans
- Unlimited access to a business support service
- Multiple directors can be covered under a single policy
- Multiple guarantees can be covered under a single policy