Description
Director’s Personal Guarantee Clause & Mini Agreement
WHEN TO USE THIS DOCUMENT
This Guarantee document is a short easy to use clause with template agreement allowing whoever is offering credit to a company (the creditor) to take a personal guarantee from a director of that company. The director will be personally promising to repay the creditor if the company does not pay the creditor.
You can ask the director to makes an unlimited guarantee (not limited to a specific amount of money) or alternatively it can be limited to a maximum specified sum of money (e.g. limited to £1,000).
The agreement also means that the creditor is not obliged to pursue the company directly or first if it fails to pay but can enforce the guarantee by demanding that the director make repayment.
The director can end the guarantee by giving 14 days notice to the creditor. However, the director will still be liable for guaranteeing repayment of any credit that the creditor has given to the debtor until that 14 days notice period has passed.
THIS DOCUMENT CONTAINS THE FOLLOWING:-
– Obligations
– Ability to customise for unlimited or limited amounts of credit
– Terms of guarantee
– Guarantor’s obligations
– Termination
DO NOT USE THIS DOCUMENT IF YOU
- Intend to create any form of credit agreement rather than a guarantee
- Want to create a guarantee for anything other than the repayment of money
- Need specialist documents for complex guarantees
Please note that this guarantee document does not include the credit agreement between the company and the creditor.
HOW TO USE THIS DOCUMENT
This is a MS Word document and is easy to use. The document uses blue text to provide extra guidance and notes and green text where you will customise your document to suit the circumstances in which it is used.
NEED A PERSONAL GUARANTEE FROM A BUSINESS OWNER?
If you need a personal guarantee from a business owner who is not running a limited company see our business owner’s guarantee Business Owner’s Personal Guarantee Clause with Mini Agreement
