An introduction to the directors guarantee
What is a director’s guarantee?
A Director’s Guarantee is a declaration or form that a director signs which states that they will cover a specified debt or debts owed by the company of which they are a director. For some lenders, for example, having such a document signed is the only way in which they will enter into an agreement, especially when it comes to high-value transactions. An agreement of this type has relatively little impact on the director in question, unless the business enters into administration or, for whatever reason, fails to repay the debt.