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Business loans with no personal guarantee

Can you get a business loan without a personal guarantee?

It is possible but uncommon, and availability depends far more on the strength of the business than on the lender. Facilities without a personal guarantee are generally limited to established companies with several years of filed accounts, solid profitability and often a charge over business assets instead. For most small and newer companies a personal guarantee is a condition of approval rather than a negotiating point, though its scope can sometimes be capped.

Updated . Lendus is an introducer, not a lender.

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How it works

  1. 01 The business applies as normal, but the lender specifically assesses whether the company's own strength, meaning its accounts, assets and trading history, is sufficient to lend against without additional personal security.
  2. 02 The lender reviews several years of filed accounts and profitability, since a track record is what replaces the reassurance a personal guarantee would otherwise provide.
  3. 03 Where the business qualifies, the lender often still asks for a charge over business assets, such as a debenture, in place of a personal guarantee from directors.
  4. 04 If the business does not qualify for no guarantee at all, the more common outcome is a personal guarantee capped at a set amount rather than left uncapped.

What lenders typically look for

What to watch for

Shopping around for a lender that waives the personal guarantee rarely works if the business itself is not yet strong enough; the guarantee is a function of risk, not lender policy. A more realistic goal for most established but not exceptional businesses is negotiating a capped guarantee, limited to a fixed amount or a percentage of the loan, rather than holding out for no guarantee at all. A capped guarantee still carries real personal risk and should be read as carefully as an uncapped one.

Lenders on our panel

Lender Facility size Published rate Minimum trading
Aldermore Bank £2k–£10m 4.5%–20% 12+ months for most products
Allica Bank £25k–£15m 9.90%–13.75% 3+ years of filed accounts for unsecured business loans; 2+ years of financial accounts for commercial mortgages
Bibby Financial Services £50k–£15m 1%–3% 6+ months preferred; startups with strong order books considered
Bizcap £10k–£500k 1.5%–5% At least 4 months
Capify £4k–£500k 1.1–1.5 4+ months for merchant cash advance; 6+ months for business loan
Capital on Tap £1k–£250k 1.25%–3% 12+ months
Close Brothers £10k–£5m 5%–18% 24+ months
Cynergy Business Finance £200k–£40m Not published Not publicly stated by Cynergy Business Finance. Eligibility appears to be assessed on the strength of the underlying receivables, stock, property or other assets on a per-business basis rather than against a published minimum years-trading threshold.
Fleximize £5k–£500k 0.9%–3.9% 6+ months
Funding Circle £10k–£500k 6.9%–36% 1+ year
Investec £5k–£100m Not published Not publicly stated. Investec assesses each business individually rather than publishing a minimum trading history requirement.
iwoca £1k–£500k 2%–6% 3+ months
Kriya £50k–£1m Not published Minimum 12 months trading with at least one set of financial accounts filed for invoice finance and working capital loans. Kriya's PayLater product has a lower minimum of 3 months trading.
LendingCrowd £25k–£500k 6%–18% 24+ months
Nucleus Commercial Finance £3k–£2m 1.5%–5% 6+ months
OakNorth Bank Not published Not published No fixed minimum published; trading history is one of several factors assessed case-by-case
Paragon Bank £5k–£1m Not published Not publicly stated; assessed as part of underwriting.
Shawbrook Bank £50k–£25m 0.55%–1.25% 12+ months preferred; none required for property-backed bridging
Start Up Loans £1k–£25k 7.5%–7.5% For start-ups: no trading history required. For existing businesses: must have been trading less than 60 months
ThinCats £1m–£30m Not published Not stated as a fixed minimum number of years; ThinCats lends to established mid-sized SMEs rather than start-ups or very early-stage businesses.
Tide £1k–£500k 7.9%–49.9% 12+ months for credit products; account available from day one
White Oak UK £5k–£500k Not published Not publicly stated; assessed as part of underwriting.

As published by each lender and dated on its own page. Indicative, not offers.

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Frequently asked questions

Which businesses can get a loan without a personal guarantee?
Mainly established companies with several years of filed accounts and solid, demonstrable profitability, since the guarantee exists to give the lender reassurance and a strong trading history provides that instead. Newer or thinly capitalised businesses are very unlikely to be offered finance without one, whichever lender they approach, because the risk the guarantee covers has not gone away, only the accounts that would otherwise offset it are missing. It is a function of the business's own financial strength rather than something that can be negotiated away through persistence or choice of lender.
What do lenders ask for instead of a personal guarantee?
Most commonly a charge over the business's own assets, such as a debenture, which is a general charge covering the company's assets rather than one specific item. This gives the lender a route to recovery from the business itself if the loan is not repaid, without involving the director personally. It works where the business has enough unencumbered assets on its balance sheet to make that charge meaningful. A company with thin assets but strong trading income may still be asked for a personal guarantee simply because there is not enough on the balance sheet for a business charge to substitute for one.
Can I negotiate a capped personal guarantee instead of an uncapped one?
Often, yes, and it is a more realistic aim for most businesses than removing the guarantee altogether. A capped guarantee limits the director's personal liability to a fixed amount or a percentage of the loan, rather than the full outstanding balance plus costs, which is the default position on an uncapped guarantee. Not every lender will agree to a cap, and it may come with a slightly higher rate or a larger deposit in exchange, but it is a reasonable point to raise before signing rather than after. A capped guarantee still represents genuine personal risk and should be read in full.
Does business size affect whether a personal guarantee is needed?
Yes, though it is trading history and profitability that matter more than headcount or turnover alone. A ten-year-old company with modest but consistent profits is generally a better candidate for no guarantee, or a capped one, than a much larger business that has only been trading for eighteen months. Lenders are ultimately assessing whether the company's own accounts and assets give them enough comfort without a director standing behind the debt personally. Smaller, newer or loss-making businesses of any size should expect a personal guarantee to be a standard condition rather than something to negotiate around.
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