Can I apply for a business loan with no

2 min read

AvailableFor strong companies

Trade-offRate or amount

EstablishedHelps most

Weigh itCost vs protection

When no guarantee is possible

A personal guarantee gives the lender recourse to a director personally if the company defaults. The stronger and more established your company, the more likely a lender will lend without one — the company's own strength is the security. Younger or smaller companies are far more likely to be asked for a guarantee.

What you give up in return

No-guarantee lending carries more risk for the lender, so the trade-off is usually a higher rate, a lower amount, a shorter term, or a requirement for company security such as a charge. The no-guarantee loans guide and the alternatives guide set out the routes.

Deciding whether it is worth it

A slightly higher cost to keep your home and personal assets out of the equation is often worth it — but not always. Compare a no-guarantee offer against a cheaper guaranteed one on total cost using the repayment calculator, and factor the personal risk into the decision. Ask every lender whether the guarantee is negotiable.

Frequently asked questions

Which companies can borrow without a personal guarantee?

Typically established, profitable companies with a solid balance sheet and trading history — the business itself is strong enough to be the security. Newer or thinly capitalised companies are usually asked to guarantee.

Is a no-guarantee loan always more expensive?

Usually somewhat, because the lender carries more risk. Whether the extra cost is worth avoiding personal liability is a judgement — for many directors, protecting personal assets justifies a modestly higher rate.