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JPP Law Blog

2022 February
New National Security and Investment Act will regulate acquisitions across 17 business sectors

New National Security and Investment Act will regulate acquisitions across 17 business sectors including transport, energy and advanced materials

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Risks and rewards with a personal guarantee

The most common reason why a director will be required to provide a personal guarantee is because a lender or supplier perceives a level of risk in your business. Perhaps the lender is not confident that your business cash flow is liquid enough to fulfil its obligations. Maybe they feel that, while your business is financially secure, your sector or industry is too volatile, and they need further protection. Perhaps your business has had a history of late payments, defaults, or liquidity issues in the past.

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