Key takeaways

• Personal guarantees are sometimes required, but not always — it depends on lender, loan type, size and firm profile.
• Asset-backed and invoice finance often reduce PG need because the asset or invoices provide security; unsecured term loans are more likely to ask for a PG.
• Accountancy firms with strong accounts, recurring client fees and a solid trading record have more negotiating power to limit or avoid PGs.
• UK Business Loans introduces you to lenders and brokers and can help find options that limit director exposure — complete a Free Eligibility Check to get started.

Short answer: Do lenders introduced via UK Business Loans ask for a personal guarantee?

In short: sometimes. UK Business Loans is an introducer that connects your firm with lenders and brokers — we do not lend directly. Whether a personal guarantee is requested depends on multiple factors: the type of finance you seek, the loan amount (we typically place loans from £10,000 upwards), how long your practice has traded, the legal structure (limited company vs corporate group), the strength of the firm’s balance sheet and the lender’s appetite for risk.

Common real-world outcomes:

• Smaller accountancy practices or newer firms applying for unsecured term loans are more likely to be asked for a PG.
• Established firms with several years’ recurring revenue, clear accounts and assets may secure facilities without director-level unlimited guarantees, or only with capped/limited guarantees.
• Specialist lenders offering asset finance or invoice finance may rely primarily on collateral (equipment or invoices) and be less likely to demand an extensive PG — though a form of director support can still be requested.

Get Started — Free Eligibility Check and we’ll match you to lenders and brokers who understand accountants and can explain likely PG requirements up front.

Why lenders request personal guarantees

Lenders ask for personal guarantees to reduce their risk where business security or trading history is insufficient to cover the loan. A PG is a contractual promise by one or more directors to make personal assets available to repay the debt if the company cannot. From a lender’s perspective, PGs:

• Improve the chances of recovery if the business fails or cannot repay;
• Encourage directors to take responsibility for prudent financial management;
• Lower the lender’s credit risk on unsecured or lightly secured lending.

When a PG is most likely

• Newer firms with limited trading history;
• Smaller firms seeking larger unsecured amounts relative to assets;
• Lenders that do not take fixed charges or other security;
• Cases where director credit profiles are weak.

How different loan types affect PGs (term loans, asset finance, invoice finance, overdrafts)

Business term loans (banks, challenger lenders)

For unsecured or lightly secured term loans, lenders commonly seek director support. Established practices with strong accounts can sometimes avoid unlimited PGs or negotiate capped guarantees; however smaller firms or larger requested amounts often trigger PG requests.

Asset finance (equipment, IT, vehicles)

Asset finance providers typically take security over the financed equipment (chattel mortgage, hire purchase). Because the asset itself provides primary security, a PG is less common — but smaller firms or marginal credit profiles may still be asked for a director guarantee as a secondary protection.

Invoice finance / factoring

Invoice finance is secured against your invoices and future cashflows. Lenders who specialise in professional services may be comfortable without a broad PG for larger firms with stable debtor books. For small practices with limited turnover, a PG may be requested to strengthen the arrangement.

Overdrafts and business cards

Overdraft facilities and business cards can attract PGs, particularly with smaller lenders or where the limit is significant relative to company assets.

Commercial property or bridging finance

Property-based finance usually involves a formal charge on the property. Lenders may still require director guarantees depending on ownership structure and the existence of other corporate debt.

Because accountancy firms often have recurring fee income, many lenders view them favourably — but the final decision rests on the lender’s assessment of security, affordability and director profiles.

How personal guarantees work — types & legal implications

Personal guarantees vary. Key types include:

• Unlimited personal guarantee: the guarantor is potentially liable for the full outstanding debt.
• Limited (capped) guarantee: liability is limited to a set monetary cap.
• Time-limited guarantee: the guarantee applies only for a fixed period (e.g., 12–36 months).
• Joint and several guarantees: multiple directors may be jointly liable; in such cases each guarantor can be pursued for full recovery.

Legal implications

• A PG is a legally binding contract: default can lead to personal asset enforcement (after formal demand and business enforcement steps).
• Enforcement usually happens after business insolvency or proven default; lenders typically act only after other recovery steps fail.
• Before signing, directors should seek independent legal advice — including clear written confirmation of what obligations, caps, covenants and enforcement triggers exist.

How accountants can reduce or negotiate PG exposure

Accountants and practice owners can take practical steps to avoid or narrow PGs:

• Strengthen the business case: supply 12+ months’ accounts, management accounts, client contracts and evidence of recurring fees; stronger evidence reduces perceived risk.
• Offer alternative security: a fixed charge over business assets, assignment of key client invoices, or an asset-backed structure can reduce the requirement for a personal guarantee.
• Negotiate the guarantee: ask for a capped amount, time-limited guarantee or exclusion of the family home from collateral.
• Split risk among directors: if multiple directors are involved, negotiate proportionate rather than joint-and-several exposure.
• Approach specialist lenders: some funders that focus on professional services are more comfortable without broad director guarantees where cashflow is predictable.
• Use a broker: an experienced broker or introducer can shop terms and negotiate better PG terms on your behalf — UK Business Loans will match you with partners who understand accountancy firms.

Tip: Always ask the lender in writing what the PG covers and whether it is capped or time-limited. If you want help comparing offers, Get Quote Now — Free Eligibility Check.

Alternatives to personal guarantees

If you want to limit personal exposure, consider:

• Stronger asset security (fixed charge over equipment or property);
• Invoice financing or factoring — which rely primarily on debtor book security;
• Equipment or vehicle finance where the lender retains ownership until paid;
• Third‑party corporate guarantees (e.g., from a holding company) instead of director PGs;
• Equity investment, director loans or overdraft restructuring as alternatives;
• Personal guarantor insurance — sometimes available but cost and coverage vary.

If you’d like to explore options that minimise director exposure, UK Business Loans can introduce you to lenders and brokers experienced with accountancy practices. You may also find our sector page useful for additional context: accountants business loans.

What to expect when you apply through UK Business Loans

Our enquiry process is designed to be fast and non‑binding. Key points:

1. Complete a short enquiry form (takes a few minutes) — this is information only and not a formal application.
2. We match your details to lenders and brokers in our panel and pass on only the relevant partners.
3. Partners will contact you to discuss terms, likely PG requirements and documentation (management accounts, bank statements, director details).
4. Submitting an enquiry does not affect your credit score. Lenders may perform checks only when you progress an application.

Start your no-obligation enquiry: Free Eligibility Check.

Compliance & transparency

UK Business Loans acts as an introducer and does not lend or provide regulated financial advice. We match your firm with lenders and brokers who will explain any requirement for a personal guarantee before you sign. Always get independent legal and financial advice before accepting or signing a personal guarantee or security document.

Quotes and terms are subject to lender underwriting, checks and conditions.

Frequently asked questions

Do all lenders require a personal guarantee for accountant practices?

No. Not all lenders require a PG. It depends on lender type, the security available and the size and history of the practice. Established firms with strong recurring fees often negotiate reduced or no PG exposure.

Can I limit a personal guarantee?

Yes. Many directors negotiate caps (monetary limits), time limits (e.g., 12–36 months) or exclusions (e.g., family home) to limit liability. Always get legal help and request any limits in writing.

What’s the difference between a personal and a corporate guarantee?

A personal guarantee is an individual director’s promise to cover debt with personal assets. A corporate guarantee is a promise by another company (such as a holding company) to be liable for the debt.

How can I find lenders that won’t ask for a PG?

Look for specialist asset or invoice finance providers, or lenders that take strong fixed security over business assets. Using an introducer/broker who knows lenders that specialise in professional services increases your chances.

Will UK Business Loans charge me for introductions?

No — our introduction is free to business owners. If a broker or lender charges fees, they will disclose this during the process.

Will applying affect my credit score?

Submitting our enquiry does not affect your credit score. Lenders may perform checks later if you progress a formal application.

Ready to check your eligibility?

If you’re an accountancy firm seeking finance from £10,000 upward and want to know whether a personal guarantee will be required, we can help you explore lender appetite and negotiate better terms. Complete a short, no-obligation form and we’ll match you to lenders and brokers who understand accountants.

Get Quote Now — Free Eligibility Check