If you are taking out a loan to purchase a property, buy a business or for any other reason, and the loan is guaranteed by individuals who are not the named borrower, your bank will likely require the individuals to obtain legal advice on the effect of the personal guarantee.
Personal guarantees involve legal obligations and potential liabilities. Banks want to ensure that customers fully understand the legal implications of signing a guarantee. Requiring legal advice helps ensure compliance with legal requirements and protects both the bank and the customer.
The solicitor providing the advice, in almost all cases, cannot be the solicitor acting for the named borrower.
To obtain advice on a personal guarantee, simply book your consultation with The Small Business Lawyer. Loan documents should be provided via email before your meeting. Meetings must be in person, and cannot be held over the phone or via zoom.