The practical answer
A guarantee can make the director personally responsible for specified company obligations if the company does not meet them, depending on its wording.
Ask for the document before signing and understand the amount covered, any limits, continuing obligations and how release works. A limited company structure does not cancel a separate personal guarantee.
Take independent legal advice if uncertain. Do not assume the guarantee is a formality or that handing back the asset will necessarily discharge the director’s liability.
Commercial finance is subject to status, lender approval and the specific asset and transaction. The right structure depends on the complete circumstances of the business.
What should I do next?
Have the asset details, supplier information and an outline of what the business needs ready. DCF can then discuss the requirement and identify which lenders may be suitable.
Read: New-start asset finance →