Director’s Personal Guarantee? Up at 2 am? Read the next bit to be asleep by 2.05 am
WHAT IS THE DIRECTOR’S PERSONAL GUARANTEE?
Does your business give limited companies time to pay your bills? How do you get paid if a company doesn’t or can’t pay? As a creditor, you need security if a limited company debtor doesn’t pay you.
WHY SHOULD I USE THIS DIRECTOR’S PERSONAL GUARANTEE?
This short, easy to use document makes it less risky to offer time to pay. Use it to get a personal guarantee from the company director. It means the director promises (guarantees) to pay you if the company doesn’t.
You can ask the director to pay everything the company owes you (an unlimited guarantee). Alternatively, limit what you ask the director to pay up to a fixed amount (e.g. £1,000 limit).
HOW DOES IT HELP?
If you don’t get paid you can decide whether to chase
- the company or the director first OR
- the company and the director at the same time.
This doubles your chances of getting paid.
WHAT DOES THIS DOCUMENT COVER?
This document includes everything you need for a personal guarantee including:
– The director’s obligations
– A safeguard so that the director can’t just get out of payment by ending the agreement.
WHAT IS THE SEPARATE GUARANTEE CLAUSE DOCUMENT AND WHY DO I NEED IT?
As well as the mini agreement you also get a clause to include in your business terms and conditions or agreement. This makes it easier to ask any company director to sign the guarantee document.
It gives you security of payment. You can ask the director to pay if their company doesn’t.
HOW TO USE THIS DOCUMENT
You can download this MS Word document on order. Our qualified lawyers have written in plain English (let’s avoid legal jargon!). The document comes with explanations and guidance notes to make it easy to use. You can easily and quickly customise the document to suit your circumstances.
NEED A PERSONAL GUARANTEE FROM A BUSINESS OWNER?
Not dealing with a registered company? Need a guarantee from a business owner who is not a company director? See our Business Owner’s Personal Guarantee and mini agreement