Business Funding Without Personal Guarantee UK

What is a Personal Guarantee?

A personal guarantee makes YOU personally liable for business debts. If your business can't repay, lenders can pursue:

• Your home (force sale)
• Your savings and personal bank accounts
• Your car and other personal assets
• Your partner's assets (if jointly owned)

This is why avoiding PG is critical - keeps your business and personal finances separate.

Top 10 Providers Offering No Personal Guarantee Options

1. iwoca - Guaranteed No PG Under £50k

2. YouLend - Usually No PG Required

PG Policy: Personal guarantee not typically required for most advances, though they reserve the right to request for higher-risk profiles or amounts over £200k.

Specifications: £5k-£500k, factor rates 1.10-1.35x, £8k/month minimum, 24-48hr approval. Best for e-commerce businesses wanting PG-free funding with platform integrations.

3. 365 Finance - No PG Under £50k

Similar to iwoca - no personal guarantee required for advances under £50,000. For amounts £50k-£250k, PG typically required. Best for hospitality businesses (restaurants, pubs, hotels) needing £10k-£50k fast.

4. Liberis - Usually No PG

Integrates with point-of-sale systems to automatically deduct repayments. Personal guarantee not typically required for standard advances under £100k. Factor rates 1.15-1.35x, minimum £8k/month revenue.

5. Fund Ourselves - No PG Policy

Explicitly markets "no personal guarantee" as key differentiator. Accepts newer businesses (3+ months vs 6-12 months for others). Factor rates 1.16-1.35x. Good for startups wanting to protect personal assets.

6-10. Other No-PG Options

• Swiftfund: Usually no PG for amounts under £75k
• Lendified: No PG for smaller advances (under £50k)
• Payl8r: Case-by-case, often no PG for retail businesses
• Kriya (Invoice Finance): Secured against invoices, no PG needed
• Uncapped: Revenue-based finance, typically no PG for tech/SaaS

Personal Guarantee vs No Personal Guarantee: Cost Difference

Myth: "No PG options are always more expensive"

Reality: Not true. iwoca (no PG under £50k) has better rates than Capify (requires PG). Rates depend on business risk, not PG policy.

Notice: iwoca (no PG) is cheapest. Capify (requires PG) is most expensive. PG requirement doesn't determine cost.

When You SHOULD Accept Personal Guarantee

Sometimes accepting PG makes sense:

• Need over £50k: Most no-PG options cap at £50k. For £100k+, PG often required
• Want traditional loan rates: Banks offering 6-9% APR (vs MCA's 25-35%) always require PG
• Building credit: PG loans report to credit agencies, helping build business credit score
• Comfortable with risk: If business is stable and you're confident in repayment ability

How to Protect Yourself Even With PG

If you must accept personal guarantee:

1. Limit the guarantee - Some lenders allow capped PG (e.g., guarantee £30k of a £50k loan)
2. Get life insurance - Covers loan if you die/become incapacitated
3. Keep emergency fund - 3-6 months expenses in untouchable savings
4. Transfer assets to spouse - Before signing (legal advice required)
5. Form limited company - Offers some protection vs sole trader

Frequently Asked Questions

Can I get funding over £100k without personal guarantee?

Very difficult. Most no-PG options cap at £50-75k. iwoca goes to £500k but requires PG over £50k. For £100k+, you'll likely need to accept PG or provide alternative security (property charge, debenture).

Are no-PG options more expensive?

No. iwoca (no PG under £50k) has lower rates (1.08-1.25x) than Capify (requires PG, charges 1.20-1.45x). Rates depend on business risk assessment, not PG policy.

What happens if I can't repay a no-PG advance?

With limited company and no PG: Business enters administration/liquidation, but your personal assets protected. Lender can only claim against business assets. Your home, savings, and personal property are safe (assuming no fraudulent trading).

Best No-PG Providers: Quick Reference

Conclusion

Getting business funding without personal guarantee is entirely possible with merchant cash advances. iwoca, YouLend, and 365 Finance all offer no-PG options for most businesses, protecting your personal assets while still providing £3k-£500k in funding.

Key insight: No-PG options aren't more expensive - iwoca has the best rates in the market AND doesn't require personal guarantee under £50k. You can protect your assets without paying premium rates.