Market Invoice compares the UK providers that fit this need, and you can get 3 free quotes through eCapital, our introduction partner. Not all invoice finance providers require a personal guarantee (PG). Bibby Financial Services and IGF are the most flexible - both consider facilities without PGs depending on facility size, debtor quality, and business maturity. Bank-owned providers (Lloyds, HSBC, NatWest, Barclays) almost always require one. If avoiding a personal guarantee is important, apply to independents first.
Bibby and IGF are the most flexible UK invoice finance providers on personal guarantees - both consider facilities without a PG depending on debtor quality and facility size. High street banks always require one. More detail + scope
This page covers
Which UK invoice finance providers require personal guarantees and how to negotiate
Not covered here
What a debenture is (see /guides/glossary/#debenture), general provider comparison (see /compare/)
Provider Personal Guarantee Requirements
| Provider | PG Required? | Notes |
|---|---|---|
| MarketInvoice3 free quotes | Not a lender or a panel. Tell us about your business and eCapital, our introduction partner, handles your enquiry and comes back to you with quotes. Free to you: eCapital pays us a fixed fee per introduction. | |
| Bibby | Not always | Case by case. Stronger debtor books = less likely to need PG. |
| IGF | Not always | Flexible on smaller facilities with good debtors. |
| Ultimate Finance | Usually yes | May waive for established businesses with strong trading. |
| Close Brothers | Usually yes | Standard requirement but limited in amount. |
| Skipton | Usually yes | Standard requirement. |
| Aldermore | Yes | Standard bank requirement. |
| High street banks | Always yes | Non-negotiable for Lloyds, HSBC, NatWest, Barclays. |
What a Personal Guarantee Actually Means
A personal guarantee means you personally promise to repay the facility if the company can't. If your company defaults and is wound up, the provider can pursue you personally for the outstanding amount. This can put your personal assets - including your home - at risk.
That said, in practice with invoice finance, the risk is lower than with a bank loan. The provider is already secured against your invoices and your customers' payments. The PG is a backstop they rarely need to enforce - it's insurance against fraud or deliberate default, not normal business fluctuations.
How to Negotiate No PG or a Limited PG
- Strong debtors reduce PG risk. If 80%+ of your invoices are to blue-chip or government customers, the provider already has excellent security. Use this as leverage: "Your real security is Tesco's credit, not my house."
- Request a capped PG. Even if a PG is required, negotiate a cap. Instead of unlimited, push for a fixed amount (e.g. £25,000). Many providers will agree to this.
- Offer a larger debenture instead. A debenture over company assets (not personal) may satisfy the provider's risk requirements without a personal guarantee.
- Get competing quotes. If Bibby offers no PG but Close Brothers requires one, use that as negotiating leverage with Close Brothers. Competition works.
- Grow into it. Some providers remove the PG requirement after 12-24 months of clean trading. Ask about this upfront - get the removal criteria in writing.
Founder & Managing Director, Muswell Rose, founder and PSC of Best Business Loans Ltd
Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind Market Invoice. He spent over three years as managing director of Penny, a UK invoice finance business, and his career runs through insurance, mortgages, commercial finance and fintech lending. He writes the Market Invoice library.
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