2 min read
The full weight on each guarantor
When co-directors sign a personal guarantee jointly and severally, the lender is not limited to a proportionate claim. It can demand the whole sum from whichever guarantor has the deepest pockets, leaving that person to recover from the others.
The imbalance it creates
A 10% shareholder can be pursued for 100% of the debt. Recovering from co-guarantors is your problem, not the lender’s. A no-personal-guarantee loan removes this risk for every director.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.
Frequently asked questions
Can I be made to pay the whole guaranteed debt?
Yes, under joint and several liability the lender can pursue any one guarantor for the full amount, regardless of your shareholding.
Can I recover from my co-directors?
You can seek a contribution from co-guarantors, but that is a separate claim you must pursue yourself — the lender is already paid.
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Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.