Personal Guarantee Insurance Product Guide

Personal Guarantee Insurance (PGI) involves more than just signing your name off on the dotted line when your business secures a commercial lending facility. In case your debt obligations are not met, a personal guarantees insurance (PGI) is there to protect your personal assets.

Types of loan facilities

Personal Guarantee Insurance is available when a Personal Guarantees (PG) is provided against a wide range of business loans.

Secured LoansUnsecured Loans
By definition, a secured loan is where the
lender has taken a charge over company
assets or has a contractual right to recover
your company assets that funds have been
lent against in addition to the PG.

Secured loans include:

● Asset finance
● Commercial mortgages
● Invoice finance
● Senior business overdrafts
● Other secured loans
● Qualifying peer to peer loans

In comparison to a secured loan, an
unsecured loan facility is where the PG and
any associated charges over personal assets
are the only security the lender has taken.

Unsecured loans include:

● Credit cards
● Business Overdrafts
● Peer to peer loans
● Short-term working capital loans
● Other unsecured loans

N.B. This document does not constitute a recommendation or advice in relation to any financial product. We believe that the information and analysis provided is accurate, but do not guarantee that this is so. Any opinions expressed are the opinions of FundingSmiths. We accept no liability for any loss or damage incurred through your use of this document.