A personal guarantee is a promise by an individual, usually a company director, to repay a business debt from their own money if the company cannot. It effectively puts personal assets behind a company loan.
Credicorp's position
Credicorp does not take personal guarantees from directors or members. We lend to the UK limited company or LLP as a separate legal entity, and the obligation to repay sits with the business itself.
- No director is asked to stand personally behind the borrowing.
- Your home and personal savings are not pledged against a Credicorp facility.
- The company is the borrower, and the company is responsible for repayment.
Why this matters
Many business lenders require a personal guarantee, which can blur the line between company and personal finances. By not taking one, Credicorp keeps the borrowing where it belongs, with the business, which respects the limited-liability structure that companies and LLPs are built on.
Credicorp is an exempt business lender operating outside the FCA consumer-credit regime, so the Financial Ombudsman Service and FSCS do not apply. If another agreement you hold mentions a personal guarantee, read it carefully, as the terms can vary between lenders.
See also: What is an obligor?, What is a guarantor in business lending?, No personal guarantee: what it means for directors.