A personal Guarantee is an agreement to act as guarantor for the debt obligations of another party, the principal — for example your company. If the Company is unable to pay the ongoing obligations towards this guarantee and defaults on a loan repayment, the guarantee comes in to effect. The obligation is secondary to the primary one between the borrower and the lender, so if your company doesn’t have any repayments due then you can’t be found in a position of liability.
We can assist directors in achieving the best possible outcome in dealing with the settlement of Personal Guarantees.
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