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A Personal Guarantee is used when you need a business owner or partner in a business to give you a personal guarantee/promise to pay you if their business doesn’t. It means that the owner or partner must pay you if the business doesn't. It's ideal when you are giving the business or partnership time to pay.
Hate it when customers and clients don’t pay your bills? Do something about it instead of wasting your time moaning.
TELL ME ABOUT THIS PERSONAL GUARANTEE
This Guarantee document is a short easy to use clause with template agreement allowing whoever is offering credit to a business (the creditor) to take a personal guarantee from an owner or partner in that business. The owner or partner will be promising to repay the creditor if the business does not pay.
GUARANTEE?
When you give a business time to pay (credit) and their credit rating is low you can ask the individual owner or partner to guarantee the payment. This legal promise makes the individual owner or partner personally and equally responsible for non-payment. So, if the business doesn’t pay you, ask the director for the money.
HOW?
You can make it easy to do by using our personal guarantee. This legal document is written in plain English by qualified lawyers who don’t eat a legal dictionary for breakfast. It comes with notes and guidance to help you to easily customise and use it. Get it ready to use in less time than it takes to drink a coffee. We have a chocolate biscuit with ours please!
A CLAUSE?
It even comes with a clause you can add into your terms and conditions of business. It means that once you’ve made a sale you can ask the individual owner or partner to sign the guarantee. No difficult conversations. No excuses.
This painless process doubles your chances of you getting your money, so what’s not to like?
WHY SHOULD I USE THIS PERSONAL GUARANTEE?
This short, easy to use document makes it less risky to offer time to pay. Use it to get a personal guarantee from the individual owner or partner. It means the individual owner or partner promises (guarantees) to pay you if their business doesn’t. You can ask the individual owner or partner to pay everything the business owes you (an unlimited guarantee). Alternatively, limit what you ask the individual owner or partner to pay up to a fixed amount (e.g. £1,000 limit).
Instant access so you can get it now!
HOW DOES IT HELP?
If you don’t get paid you can decide whether to chase the business or individual owner/partner OR the business AND individual owner/partner at the same time. This doubles your chances of getting paid.
WHAT DOES THIS DOCUMENT COVER?
This document includes everything you need for a personal guarantee including: – The business or individual owner/partner’s obligations – A safeguard so that the business or individual owner/partner can’t just get out of payment by ending the agreement.
WHAT IS THE SEPARATE GUARANTEE CLAUSE DOCUMENT AND WHY DO I NEED IT?
As well as the mini agreement you also get a clause to include in your business terms and conditions or agreement. This makes it easier to ask any business or individual owner/partner to sign the guarantee document. It gives you security of payment. You can ask the business or individual owner/partner to pay if their company doesn’t.
HOW TO USE THIS DOCUMENT
You can download this MS Word document on order. Our qualified lawyers have written in plain English (let’s avoid legal jargon!). The document comes with explanations and guidance notes to make it easy to use. You can easily and quickly customise the document to suit your circumstances.
NEED A PERSONAL GUARANTEE FROM A COMPANY DIRECTOR?
Dealing with a registered company? Need a guarantee from an individual who is a company director? See our Director's Personal Guarantee and mini agreement