Do I need to provide personal financial

2 min read

Personal guaranteeTriggers it

Young companyLeans on the director

Personal creditChecked

AssetsSometimes assessed

When personal information comes in

A company borrowing purely on its own strength may need little personal detail beyond director ID. But where the lender wants a personal guarantee, or where the company is too young to stand alone, they assess the guarantor personally — because that person is backing the debt. See how a guarantee works before you sign one.

What is checked

For a guarantor, expect a personal credit check and, on larger or secured deals, a statement of personal assets and liabilities. The lender is establishing that the guarantee is worth something. This is separate from the company assessment and does not replace it.

Deciding whether to give it

Providing personal information is often the price of accessing the facility, particularly for a young or smaller company. Weigh the guarantee carefully — the comparison answer notes that a no-guarantee deal can be worth a higher rate. Check affordability at the company level with the affordability calculator either way.

Frequently asked questions

Why does the lender want my personal finances if the company is borrowing?

Because a personal guarantee makes you personally liable if the company cannot repay. The lender is assessing whether that backstop is meaningful, which requires seeing your own position.

Can I get a business loan without giving personal financial information?

Sometimes, on a stronger, established company borrowing an unsecured sum with no guarantee. The younger or smaller the company, or the larger the loan, the more likely personal information is required.