Escalation in ‘Personal Guarantee’s’ – what could go wrong?
Let’s start by explaining what a ‘PG’ is and isn’t. A PG is most often asked for when a Company is seeking a loan from a bank and the bank seeks to tie in the Directors personally, it is basically an undertaking that if the company cannot pay back the loan then the Directors will do it themselves. This does of course serve to undermine the concept of a ‘Limited Liability Company’.



