AFT help Directors who are struggling to repay business debts they have secured with personal guarantees, we help you to find a sensible way forward and reduce stress.

Personal guarantees

We secure workable solutions to personal guarantee debt issues by taking a different approach.

Personal guarantees from directors of limited companies are now common in the SME market. While you’re doing well it’s easy to ignore the potential implications, but the situation can change quickly if your business gets into financial difficulties.

Directors, who may not even be aware they have provided a guarantee, can be faced with a demand from the creditor or lender to make good the shortfall for any outstanding debt following a period where the business hasn’t made the repayment during business insolvency.

We have extensive experience in dealing with personal guarantees and can provide help and support for directors, who may still be coming to terms with the failure of their business.

We’ll review the circumstances surrounding the taking of the guarantee to highlight any shortcomings or irregularities.  This review along with the client’s individual circumstances will become key factors our Consultants consider when seeking a sensible debt settlement agreement.

If you’re concerned about the implications of a personal guarantee, it’s important to act quickly. You may receive letters and even a formal demand for payment. If you do, you must not ignore them, as it will lead to your case being processed quickly through the courts and you will lose control over how the matter is dealt with.

Typical guarantees

Lending related guarantees
Lenders have been taking guarantees from directors for a long time and generally have learnt from their past mistakes. As a result, most guarantees are robust. However we continue to see cases where directors have relied on assurances made by representatives of lenders at the time the guarantee was provided. It is important to understand the detail and basis of any assurances made by lenders in the context of taking the original guarantee as they could impact upon its validity.

Trade creditor guarantees
Guarantees in favour of trade creditors are not new but in recent years it is common practice to incorporate such a guarantee within credit application forms. As a result, directors may not even realise that they provided a personal guarantee when they sought credit terms from their supplier.

Property lease guarantees
Guarantees on property leases are less common but may still be relevant for businesses trading from leased premises. Directors also need to take care when assigning a lease to another company as they may find that their guarantee remains in place even after the lease has been assigned.
Landlords do have a duty to mitigate their loss by seeking to re-let the property. However even if they are successful you could still be liable for the difference in rent.

Why you should contact us today

FREE, no obligation

FREE, no obligation

9/10 clients achieve
a successful outcome

Success-related fees

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