Understanding personal guarantees in business finance

A personal guarantee (or PG) is a commitment from a business owner or director to personally repay a loan if the business can’t.

If your company defaults, the lender may ask you to cover the remaining balance. up to the amount guaranteed. This means your personal assets, like your savings or home, could be at risk.

When you apply for funding at Capitalise, your funding specialists will walk you through the terms and risks, including personal guarantees.