2 min read
Where the exposure sits
Landlords often require a director’s personal guarantee on a commercial lease. If the company stops paying, you are personally liable for the rent — potentially for the balance of the term, which can dwarf a loan guarantee.
Managing it
Negotiate a cap, a break clause or an authorised guarantee limited to your tenure. Understand the term before you sign — a long lease guarantee is a serious, lasting personal commitment quite separate from any loan.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. A no-personal-guarantee loan keeps your borrowing free of the kind of personal exposure a lease guarantee creates. See business loans or apply online.
Frequently asked questions
Am I liable for rent if my company cannot pay?
If you personally guaranteed the lease, yes — potentially for the remaining term. It is a large, long-tail exposure separate from any loan guarantee.
How do I limit a lease guarantee?
Negotiate a cap, a break clause, or a guarantee limited to your period as tenant, and be clear on the term before signing.
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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.