Personal
Guarantee
Insurance (PGI)
Why is PGI Important Now?
With government-backed loans such as CBILS and BBLS now a thing of the past, personal guarantees have once again become a standard requirement for business finance. This places directors' personal assets at risk if the business is unable to repay its loans.
PGI offers essential protection in todays financing environment, covering a substantial part of your liability and allowing you to pursue business finance with confidence. While it doesn't remove all risk, PGI acts as a vital financial safeguard.
Retrospective Coverage for Existing facilities
A Key Reason to Consider PGI
One of the most compelling reasons to take out Personal Guarantee Insurance (PGI) is its availability for existing finance agreements. If you've already signed a personal guarantee on a loan or finance facility, PGI can be applied retrospectively. This means you can protect yourself even after the loan has been taken out, reducing the potential exposure to your personal assets.
Whether it's for business loans, asset finance, development funding, or invoice finance, PGI provides peace of mind, ensuring that past decisions don't expose your personal assets to unnecessary risk. This retrospective coverage allows business owners and directors to secure protection even on loans they've already committed to.
Key Benefits of PGI
| Significant Coverage: | PGI can cover up to 80% of your personal guarantee for both secured and unsecured loans | |
| Multiple Directors Covered: | You can include up to 5 directors or shareholders in one policy at no additional cost | |
| Tax Efficient: | PGI premiums are P11D neutral, meaning they can be expensed through your company, offering potential tax savings | |
| Flexible Application: | Available for both new loans and historic loans with existing personal guarantees | |
| Business Support Services: | Access expert advice on business recovery, financial restructuring, and more, helping you navigate financial challenges | |
| Professional Debt Negotiation: | The policy includes up to £10,000 for professional debt negotiation services if the guarantee is called upon |
Premiums
Premiums vary based on individual circumstances
2.5% - 4.5% + IPT *
of the guarantee sum insured
Ready to Protect Your Assets?
While business always involves some risk, Personal Guarantee Insurance creates a robust financial barrier between your business liabilities and personal assets.
Should you have any questions then please call us on 01243 767 967 or email us at sales@qedfinance.com.
Looking to review existing finance or explore new funding requirements?
QED Finance offers a variety of financial services to support your business, including access to:
- Business Loans: Flexible solutions to meet your working capital needs.
- Asset Finance: Financing options for new equipment, vehicles, or technology.
- Invoice Finance: Access cash tied up in unpaid invoices.
- Commercial Mortgages: Tailored property finance solutions.
- Bridging Loans: Short-term finance to bridge funding gaps.
- Development Finance: Structured finance for property development projects.