How to get a UK business loan with no personal guarantee
Most UK SMB term loans require a personal guarantee from at least one director. A small subset of UK lenders waive the PG requirement under specific conditions. This guide covers when no-PG is genuinely available and what you give up to get there.
Director, BestBusinessLoans
Oliver leads BestBusinessLoans's editorial reviews and methodology. With a background in UK commercial finance, he oversees lender research, rate verification and review independence.
Last reviewed: 26 April 2026
Why most UK SMB loans require a PG
Lending to a Ltd company is lending to a corporate entity that can fail without director personal liability. The PG closes that gap. A typical UK SMB unsecured term loan is structured as: company borrows, all directors guarantee personally (often joint and several), lender enforces against company first then directors.
When no-PG is genuinely available
Three scenarios. First, asset-backed lending against a high-value asset (commercial property, plant) where the asset itself is the security. Second, MCA against strong card-machine flow where the daily settlement provides repayment. Third, some specialist invoice finance against a quality debtor book. In each case the security replaces the PG, not removes it from the equation.
Lenders that offer no-PG products
Allica Bank for asset-backed commercial real estate lending. OakNorth for bespoke £500k+ asset-backed deals. 365 Business Finance for some MCA applicants. Specialist invoice finance providers (covered on MarketInvoice). Mainstream term-loan lenders (Funding Circle, iwoca, Capify) almost always require a PG.
What you give up for no-PG
Smaller ticket relative to your turnover, more security required, longer underwriting, higher headline rates compared to PG-backed equivalents. The economic trade is: lender takes more execution risk, you pay more for the product.
Limited PGs as a middle ground
A limited PG caps the director's exposure at a stated figure (e.g. £50,000 on a £200,000 loan). Easier to negotiate than no-PG entirely. Most UK SMB lenders will consider a limited PG on commercially sensible deals if you ask. Worth raising at term-sheet stage.
FAQ
Can I get insurance against a PG instead of waiving it?
Yes, PG insurance products exist that pay the lender if you default on the PG. Premiums are 1% to 4% of the PG amount per year. Useful for high-value PGs but expensive and most policies exclude voluntary winding-up.
Do all directors need to sign the PG?
Lender-dependent. Most UK SMB lenders insist on all directors with 20%+ shareholding signing. Some accept a single director PG where one director is the operational lead. Joint-and-several vs several-only is the next negotiation.
Reviewed by Oliver Mackman, Director. Last reviewed: 2026-04-26.