I speak to property investors and businesses every day about funding solutions and one of the first questions that always comes up is around personal guarantees when borrowing for business or property. They’re sometimes necessary, especially on a first‑time deal, but too often they’re treated as the only route to accessing finance. And that’s simply not true. Borrowing to grow shouldn’t mean putting your home or personal savings at risk. Yet for many business owners, that’s exactly what happens when they apply for funding. The Federation of Small Businesses (FSB) reported last year that 6 in 10 directors would borrow to grow if they didn’t have to risk personal assets. But when a personal guarantee is required, that number drops to just 13%: 💠8 in 10 directors applying for finance are asked to sign a PG 💠1 in 4 walk away because of it 💠 Many others sign because they feel they have no choice And that’s where the real problem begins. Too many people don’t fully understand what they’re signing as I’ve seen directors take out what they believe is an “unsecured” business loan, assuming that means no personal risk. In reality, it’s often the opposite. If things go wrong, that unsecured loan can come straight back to them. Of course, lenders have their perspective too. If a director isn’t prepared to share some of the risk, why should they? A PG shows commitment and confidence. I am also confident that those reading this are not aware that PG Protection assurance is also available, that could help protect your assets! At Finances.House our job is to make sure no one signs something they don’t fully understand and to push back when guarantees are used as the easy option rather than the right one. Used properly, they can help get a deal done. Used carelessly, they can hold back a business for years. If you need to get in touch and need any advice on business and property commercial finance, please reach out to me on the details below: 📩 Email: sanjay@finances.house 📅 Book a call: https://lnkd.in/eHeW6T7G #BusinessFinance #CommercialFinance #SMEFinance #PersonalGuarantees #BusinessGrowth #FundingSolutions #Entrepreneurship #UKBusiness #FinanceBroker #AcquisitionFinance #WorkingCapital #PropertyFinance

Posted by Sanjay Majithia at 2026-02-02 12:20:58 UTC