What am I actually agreeing to when I sign a personal guarantee?

Typically to pay the borrower's debt personally if the borrower does not, often on demand, sometimes without limit, and frequently with your home or other assets exposed if the guarantee is supported by security. We take you through the scope, the cap if there is one, the trigger for demand and how the guarantee can come to an end.

What is independent legal advice?

It is advice given to you alone, by a solicitor who does not act for the lender or the other party, so that you understand the nature and consequences of the document you are being asked to sign. The solicitor then signs a certificate confirming that the advice was given, which the lender relies on.

How quickly can an independent legal advice appointment be arranged?

We normally need the draft documents, the lender's certificate and your identification in advance, and the appointment itself is usually a single meeting by video or in person. Send the lender's deadline with your enquiry so we can tell you honestly whether it can be met.

Directors, shareholders, spouses and partners asked to guarantee

Personal guarantee solicitor — independent legal advice

Understand exactly what you are guaranteeing, what could be claimed and what your exit is — before you sign the certificate.

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A personal guarantee converts a company debt into your debt. If the borrower does not pay, the lender can come to you, frequently on demand, sometimes without limit, and often with a charge over your home standing behind the promise.

Because lenders require independent advice before a guarantee is signed, the appointment is also your chance to see the document clearly. We act for you alone, explain the exposure and complete the lender's certificate.

Who this service is for

Directors guaranteeing a company facility, overdraft or asset finance
Shareholders asked to guarantee alongside other shareholders
Spouses and partners asked to sign a guarantee or consent to a charge
Tenants' guarantors under commercial leases
Anyone whose lender requires a certificate of independent legal advice

What the advice covers

Extent of liability: Whether the guarantee is capped or unlimited, and whether it covers interest, costs and future facilities.
Demand and enforcement: Whether the lender must pursue the borrower first, and what happens when a demand is made.
Joint and several liability: Your position where there are co-guarantors, including rights of contribution between you.
Security over your home: Where the guarantee is supported by a charge, what enforcement would mean in practice.
Release and termination: How and when the guarantee ends, including on sale of shares or departure from the company.
Certificate of advice: The lender's prescribed certificate, completed where its terms are compatible with our duties to you.

How Resolve can help

Explain the exposure in monetary terms, not just legal terms
Identify the points that can realistically be negotiated — caps, time limits, apportionment
Advise you privately, without the borrower or lender present
Complete the certificate promptly so the facility is not delayed
Confirm the advice in writing so you have a record of what you were told

How the appointment runs

1. Enquiry
Tell us the guarantee type, the lender and the deadline you are working to.
2. Documents and ID
Guarantee, facility documents, certificate and identification sent in advance.
3. Private appointment
A meeting with you alone by video or in person, covering exposure and alternatives.
4. Certificate returned
Signed certificate sent to the lender, with written confirmation to you.

Why instruct us

Independent of the lender and the borrower
Direct about worst-case exposure, including risk to your home
Fast turnaround where the lender's deadline is realistic — and an honest answer where it is not
Video appointments across England & Wales, or in person in Watford

Where we act

We advise guarantors on documents governed by the law of England & Wales, throughout the jurisdiction including London and Hertfordshire.

Frequently asked questions

What am I actually agreeing to when I sign a personal guarantee?
Typically to pay the borrower's debt personally if the borrower does not, often on demand, sometimes without limit, and frequently with your home or other assets exposed if the guarantee is supported by security.
We take you through the scope, the cap if there is one, the trigger for demand and how the guarantee can come to an end.
What is independent legal advice?
It is advice given to you alone, by a solicitor who does not act for the lender or the other party, so that you understand the nature and consequences of the document you are being asked to sign.
The solicitor then signs a certificate confirming that the advice was given, which the lender relies on.
How quickly can an independent legal advice appointment be arranged?
We normally need the draft documents, the lender's certificate and your identification in advance, and the appointment itself is usually a single meeting by video or in person.
Send the lender's deadline with your enquiry so we can tell you honestly whether it can be met.

Read all frequently asked questions

Start Your Enquiry

Tell us briefly what has happened and what you need. Email and telephone are both required so we can respond in the way that suits you.