How To Protect Yourself From Personal Guarantee's (PGs) Being Called

Business loans often require Personal Guarantees (PGs) from the Director's, personal guarantee insurance can protect you personally from invoice factoring, asset finance, mortgages and commercial loan providers calling against your Directors Personal Guarantee in the event of a business failure. If a Limited Company faces insolvency it's always important to seek advice from a licensed insolvency practitioner (IP). Your IP should advise you that "Debts" such as business loans, factoring agreements or asset finance agreements that have been personally guaranteed will not be extinguished in the liquidation or administration process and the creditor could come after you personally. This is why should consider personal guarantee insurance. Corporate insolvency is stressful enough so don't add to this stress by not having adequate protection against your PG being called. Where the Director has personally guaranteed a credit agreement and that credit agreement fails / falls into arrears the lender may pursue the Director in the courts to enforce the personal guarantee. The court could then seize or repossess your assets such as your home to clear the outstanding debt.