Practical preparation · General information, assessed individually
Map the borrower, security and guarantor
A personal guarantee can make an individual responsible when the business does not meet its finance obligations. It can expose personal assets even though the borrower is a company. A property mortgage, company security and personal guarantee are separate parts of the package; ask your solicitor to explain each document.
- Name the borrower, lender, guarantors and properties involved.
- Request the actual proposed documents rather than relying on a verbal description.
- Ask which obligations belong to the company and which you would accept personally.
Understand the possible amount and scope
A guarantee may be limited or unlimited. A stated cap needs checking for interest, costs and expenses outside it. Joint and several wording can allow a lender to seek the full guaranteed amount from one guarantor. All-monies wording can extend beyond the single facility you are discussing.
- Ask your solicitor to identify the cap, covered facilities and additional costs.
- If several people sign, ask how liability works if another guarantor cannot pay.
- Ask whether later borrowing, extensions or variations could affect your exposure.
Get advice before committing
Arrange independent legal advice on your own position before signing. Some lenders require a solicitor’s confirmation of that advice. Bring the finance offer and the guarantee together, and allow time to resolve unclear terms. Negotiation may be possible, but the lender does not have to accept a different arrangement.
- Make a short list of the terms you do not understand.
- Ask how a payment demand could affect your personal finances.
- Compare the complete funding arrangement, including fees and security, rather than the rate alone.
Plan the review and eventual release
Leaving a company does not necessarily end a guarantee. Nor should a refinance, share sale or repayment be treated as proof of release without checking the documents. Ask what formal steps and written confirmation would be needed, and keep the final records with the original agreement.
- Set review reminders for refinancing, ownership changes and facility maturity.
- Keep contact details current and agree how you will stay informed about the business’s borrowing.
- If repayment becomes difficult or a demand arrives, seek prompt independent legal and debt advice.
Bring to the first conversation
- Current finance offer and draft guarantee
- Borrower and ownership outline, including all proposed guarantors
- Existing facilities and guarantees that may overlap
- Your questions on liability, future changes and release
Start with an outline. Send sensitive documents only through the secure route agreed with Jack.
Your questions, answered
Does borrowing through a limited company protect me from the guarantee?
The company structure does not cancel a personal commitment you sign. Your solicitor should explain the specific guarantee and any security over personal assets before you agree to it.
Link to this answerIf there are two guarantors, is my liability automatically half?
No. Do not assume an equal split. Ask how the actual wording operates, including joint and several liability and any cap. A private arrangement between guarantors is not automatically binding on the lender.
Link to this answerCan Jack tell me whether I should sign?
Jack can discuss the funding proposal and help identify questions for the lender. Independent legal advice on the guarantee, its effect on you and whether to sign belongs with your solicitor. This checklist does not interpret your contract.
Link to this answerSources & further reading
Sources checked 13 October 2026. Preparation prompts are editorial checklists; follow the linked original for its scope and updates.
Prepared for Jack Cousins’s website · 13 October 2026. About Jack · How site content is prepared. Lender criteria and individual circumstances determine available options. This guide is not a mortgage offer or personal recommendation.