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A guarantee is a legal commitment to repay a debt where the original borrower has defaulted on their repayments. In essence, the person providing the guarantee will “step into the shoes” of the debtor.
A director’s guarantee may be required where a lender is providing funds to a limited company. A director’s guarantee entitles the lender to pursue the director in his or her personal capacity if the company defaults on the repayments.
When a subsidiary company borrows funds, the lender is likely to seek a guarantee from the parent company. This is often referred to as a “cross company guarantee”.
Whichever form of guarantee you require, our lawyers can assist.
Deputy Managing Partner
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We were recommended to use Poole Alcock and in particular, Monisha by our neighbours, who found her to be very approachable.
Throughout our relationship, from the initial meeting through to completion, the communications were always first class and easily understood. Monisha was knowledgeable in the subject we approached her with and was quickly able to conclude the documentation and business we had.
I would not hesitate to recommend Poole Alcock, and Monisha herself, if asked.
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