Secure yourself and your business with a Personal Guarantee from Directors of Limited Companies
Most people starting out in business do not realise that any business transactions that they engage in with a Company or partnership with limited liability can leave them exposed and in debt.
Doing business with a Limited Company or limited liability partnership is only worth as much as the company is worth and consequently if the company fails and is closed down, the Directors of the failed company may escape all liability and walk away, leaving you holding the debts or unfulfilled promises, often promises for which you may have already paid and received no goods or services in return.
It is therefore vital that you secure yourself and your business with a Personal Guarantee from the Directors of the other companies with which you do business.
What is a Personal Guarantee?
A Personal Guarantee is a secured promise from an individual or individuals to make payments or deliver products and services when their business is not able to do so. The promise is usually backed up by an asset for example: a house or some other form of real property.
We can advise and assist you to obtain legally enforceable personal guarantees from one or more directors of any Limited company or LLP company that you have dealings with. Therefore, in the event of a dispute or debt recovery matter, you will have protected yourself and your business with a personal guarantor against whom you can enforce the debt personally. This may involve taking a charge over their home property or something similar and will guarantee you at least some compensation in the event their company fails.
For Further Information please call 020 8401 7352