Many lenders require Personal Guarantees when lending to Limited Companies as additional security.
Policies can cover a range of finance types, including secured loans, unsecured loans, asset finance and commercial mortgages.
If the business is unable to repay its debt, the lender may seek repayment from the individual providing the guarantee. PG insurance will pay a sum to the lender, reducing the guarantor’s personal liability.
Cover can be arranged up to 80% of the guaranteed amount.
Insured limits are up to £550,000 for secured loans or £400,000 for unsecured loans.
Annual premiums range from 1.5% – 6% + Insurance Premium Tax (currently 12%). Pricing is dependent on the type of loan, amount covered and the creditworthiness of the business and individual.
Cover can be tailored to the borrowing structure and guarantee in place.
