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No Personal Guarantee Loans
You can access working capital for your business whilst:
- Protecting your personal assets
- Safeguarding your credit score
- Reducing financial risk
- Managing cashflow
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Funds up to 250k
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Terms 3m – 5yr
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Enquire in under 60 seconds
Grow Your Business Whilst Maintaining Peace of Mind
A ‘PG’ or personal guarantee is a promise that if a business defaults during the loan agreement term, the owner will take liability for the remainder of the loan.
An unsecured business loan with a No PG agreement offers an alternative that doesn’t put any of your personal assets at risk, allowing you to access funding while keeping business finances and personal finances separate.
We make business finance simple.
What can I use a No PG loan for?
No PG funding is available from Portman in many forms including short and long-term loans, asset finance, VAT, corporation tax and invoice loans. This type of finance can be used for a whole array of different business needs, but are commonly used for:
Am I eligible for a No PG loan?
Your approval for a No PG loan is more likely if you have:
- 3 years + of trading
- A strong credit score and credit history
- Sound profit margins and a steady cashflow
- Annual revenue over 100k
- Limited existing liabilities
What are the advantages and disadvantages of this type of loan?
Advantages
- Reduced risk by protecting your personal assets and credit score.
- The process is typically quicker than applying for a loan with a PG.
- Simpler exit strategy if you choose to sell the business during the term of the agreement.
Disadvantages
- Eligibility requires a healthy credit score and financial stability, which may not apply to everyone.
- There are usually shorter repayment terms, which could mean that the loan is repaid by larger payments, but over less time.
- You might not get an approval if you have been trading for under 3 years.
Customer Example – Property Development Company – Manchester, UK
- Agreement – £80,000 flexible loan with a No PG facility, to be paid back over 12 months.
- Loan use – Used to enhance working capital and support operational expenses for company projects.
- Long-term benefit – This will facilitate smoother cash flow management for projects and allow the company to capitalise on growth opportunities without financial strain.
Ready to apply for a loan?
When you’re ready to take the next step toward securing a small business loan, our team is here to assist. Simply reach out to us directly or complete our enquiry form.
Alternative Business Finance Options
What are some alternative funding options?
- Secured business loans – Although a secured business loan may require you to sign a personal guarantee, having collateral can make approvals easier and rates lower for smaller businesses who haven’t been trading for as long.
- Bridging loans – These are a form of short-term secured loan tailored towards property and development projects. We can offer funding from £200,000 – £5 million, with short repayment terms to help bridge cash-flow gaps caused by ongoing projects.
- Hire-purchase agreements – The asset itself is the collateral for the loan, so your company can finance this asset over time and own it at the end of the agreement. This spreads out payments and reduces the cost pressures of buying outright.
- Lease finance – If you need a piece of equipment for a set period, leasing it and making rental payments could be a great option for your business. This offers access to expensive equipment without a large upfront cost. Once the term is complete, you can explore ownership options.
Personal Guarantees (PG) & Debentures for Business Loans
PG vs. Debenture
Securing funding for your business is crucial for growth and stability. But when it comes to repayment terms, you might encounter two options – personal guarantees and debentures. What’s the difference?
- Personal Guarantee – A personal guarantee is a legal agreement where a business owner promises to be personally liable for the loan if the business defaults. This essentially puts your personal assets at risk if the business cannot repay the loan. Personal guarantees are typically required for unsecured loans (loans without collateral). Learn more about PG’s with our helpful guide.
- Debenture – A debenture is a loan secured on a specific business asset (like equipment or inventory). In case of a loan default, the lender can seize the pledged asset to recover some or all of the outstanding loan amount. Debentures offer some protection for the lender but importantly for the borrower, limit risk to the business not personal assets .
When might I be offered a Debenture?
A debenture makes the business liable, not the directors, but they are offered at the discretion of the lender:
- Business Assets – Does the business have unencumbered assets, i.e. ones it owns that are not already on finance that the lender can use as security.
- Director Guarantees – Does the Business Directors already have personal guarantees or have limited personal assets.
- Asset Type – Are the available assets high value and re-saleable, could a lender liquidate them easily if required?
Talk to Portman or consult a financial advisor to understand the implications of each option and choose the one that best suits your business and personal needs.
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We spoke with Portman Finance Group ahead of a requirement for some additional funds for a project, they clearly went through all the options and provided credible solutions
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City Brunch
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