Usually, for unsecured lending. For most unsecured facilities above £25,000, a director's personal guarantee is standard. The amount, scope and any property charge vary by lender. A personal guarantee is a different thing from asset security, which is a charge over specific assets.
Personal guarantee vs asset security
- Personal guarantee (unsecured lending): a director promises personally to repay if the business can't. It isn't tied to a particular asset.
- Asset security (secured lending): the lender takes a charge over specific business or personal assets. It's usually needed for facilities above £250,000, and it brings the rate down.
What to check before you sign a guarantee
- The amount: is it capped, or does it cover the whole debt?
- The scope: does it cover just this facility, or all your business borrowing?
- Any charge over property: some guarantees are backed by a charge over a home.
- When it can be called: what would trigger it.
Get independent legal advice before signing.
Under the Growth Guarantee Scheme
Lenders can still ask for a personal guarantee, but they can't take your main home as security. See Does a Growth Guarantee Scheme loan need a personal guarantee?.
Weighing it up
A personal guarantee is one of the key trade-offs between offers. We'll walk you through it when comparing options.
Last reviewed: 8 October 2026