Personal Guarantee Request Template
A personal guarantee makes a director or proprietor personally liable for a company's debt — this template gives you a clear, professional way to request one without souring the relationship.
What's included
- A request letter/email you can adapt and send
- How to frame the request so it lands as routine, not insulting
- What details the guarantor must provide
- Why the guarantee itself must be lawyer-drafted
6 min read
When to ask for a guarantee
When you extend credit to a company or trust, the entity — not the people behind it — owes the debt. If that entity has few assets, a personal guarantee from a director gives you recourse to an individual who usually does. Ask for one on higher-limit company accounts, newer companies with no trading history, and any account where the entity looks thin.
Framing matters. Presented as standard practice for accounts of this size, a guarantee request is routine. Presented as a special demand, it feels like distrust. The template below keeps it matter-of-fact.
The request template
Subject: Credit account — personal guarantee
Dear [Director name],
Thank you for your application for a credit account
with [Business name].
For company and trust accounts at the limit you have
requested ($______), our standard policy is to obtain
a personal guarantee from a director. This is a routine
condition for accounts of this size and is not a
reflection on [Customer entity].
To proceed, please:
1. Review the attached deed of guarantee.
2. Provide the guarantor's full name, date of birth
and residential address.
3. Sign where indicated, witnessed as required.
We recommend you obtain your own legal advice before
signing. Once the signed guarantee is returned, we will
activate the account and confirm your credit limit and
terms.
Please don't hesitate to call me on [phone] with any
questions.
Kind regards,
[Name], [Business name]How to use it
Send this once the credit application is in but before the account goes live, so the guarantee is a condition of credit rather than an awkward afterthought. Attach the lawyer-drafted deed of guarantee — never improvise the guarantee wording yourself. Capture the guarantor's details on your credit application form so they are already on file.
Work through your director guarantee checklist to make sure the guarantee is executed properly, since defects in signing or witnessing can render it useless.
This is general business information, not legal advice. The guarantee deed and execution requirements must be drafted and reviewed by a qualified lawyer.
Tips
- Frame the request as standard policy for accounts of that size, not personal distrust.
- Ask before the account goes live so the guarantee is a condition of credit.
- Always attach a lawyer-drafted deed — never write the guarantee wording yourself.
- Recommend the guarantor get their own legal advice; it improves enforceability.
FAQ
Will asking for a guarantee offend customers?
Rarely, when framed as routine policy for the account size. Directors of well-run companies expect it on larger limits.
Can I draft the guarantee myself?
No. A defective guarantee is often unenforceable. Have the deed drafted by a lawyer and follow proper execution and witnessing.
When should I ask for a guarantee?
On higher-limit company or trust accounts, newer companies with no track record, and any entity that looks asset-thin.
Templates are a head start — not legal advice
Customise to your business and have important documents reviewed. Need to recover a debt? We can help.