Independent legal advice for a director's personal guarantee
If your company is borrowing and the lender wants you to guarantee the loan personally, it will usually require independent legal advice before you sign. A solicitor explains your personal liability, checks you are signing freely, and signs the ILA certificate your lender needs, often the same day.
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- 70+ lenders
- SRA-regulated solicitors
- Video, or in person in London
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Free 10-minute consultation
ILA from £140 + VAT per person · fee confirmed on the call
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- ★ 4.9 · 282 Google reviews
- 70+ lenders
- SRA-regulated solicitors
- Video, or in person in London
What is a director's personal guarantee?
A director’s personal guarantee is a promise that you will pay your company’s debt yourself if the company can’t. If the business defaults, the lender can claim the money from you personally, which can put your savings, investments and, in some cases, your home at risk.
Lenders often ask for one on business loans, commercial mortgages, bridging and development finance and asset finance, particularly where a company is newly formed or has a short trading record.
Guarantees vary a great deal. Some are capped at a fixed amount; others are unlimited and cover “all monies” the company owes the lender, now and in future. Where there are several directors, the guarantee is usually “joint and several”, which means the lender can pursue any one of you for the whole amount.
Why does my lender require independent legal advice?
Following the House of Lords decision in Royal Bank of Scotland v Etridge (No 2) [2001], lenders take steps to make sure a guarantor understands what they are signing and is not being pressured or unduly influenced. The usual step is to require advice from a solicitor who is independent of the lender, and who confirms in a certificate that the advice has been given.
Most lenders will not release funds until they have the signed ILA certificate, so arranging advice early helps keep your completion on track.
What your solicitor will explain
Your maximum liability
Whether the guarantee is capped or unlimited, and whether it covers interest, costs and future borrowing.
What is at risk
How the lender could enforce the guarantee, and what that could mean for your savings, property and credit record.
Changes without your consent
Whether the lender can increase, extend or vary the company's borrowing without asking you again.
Ending it, and your options
Whether you can withdraw if you leave the company, and options such as asking for a cap or time limit, or not signing.
Completion deadline close? Same-day appointments available.
Documents you'll need
- The personal guarantee from your lender
- The facility letter or loan agreement it relates to
- Your lender's ILA certificate template, if it has one
- Photo ID (passport or driving licence)
- Proof of address dated within the last three months
How it works
- 1
Book a free consultation
Pick a time above. It takes under a minute.
- 2
Speak to your solicitor
An SRA-regulated solicitor explains the risks in plain English, by video or in person in London.
- 3
Certificate sent to your lender
Your signed ILA certificate and documents are dispatched, usually the same day.
Frequently asked questions
Can I get independent legal advice for a personal guarantee online?
Yes. Most lenders accept advice given by video call, so you can usually be advised from home or the office. If your lender insists on a face-to-face meeting, that can be arranged in London instead.
Is there an ILA solicitor near me?
You don't need one nearby. Our SRA-regulated solicitors advise by video call wherever you are in England and Wales, often the same day, and video advice is accepted in most cases. If you need to meet face to face, appointments are available at the solicitor's office in London.
Can the company's solicitor advise me?
It depends on your lender. Many lenders insist the advice comes from a solicitor who is not acting for the company or the lender, so that it focuses only on your personal position. Your lender's instructions will say, and we can check them on your free consultation.
Do co-directors need separate advice?
Each guarantor must be advised on their own position, and lenders normally need a separate certificate for each person. Whether you can be seen together or need separate appointments depends on your lender and your circumstances.
How quickly can I get my certificate?
Often the same day. Once your solicitor has your documents and has advised you, the signed certificate is usually sent to your lender or broker the same day. Same-day appointments are often available.
How much does it cost?
Independent legal advice starts from {price} per person. Your solicitor confirms the fixed fee on your free consultation, before any work starts.
What if I decide not to sign?
You don't have to sign. Your solicitor will explain what that could mean, for example the lender declining the loan or asking for other security, and whether terms such as a cap on your liability might be negotiated.
Reviewed by Saba Rehman, Solicitor
SRA-regulated · Last reviewed 9 October 2026