Guarantee: individual guarantor

When do I use this document?

Guarantee from an individual (as opposed to a company) for a corporate borrower’s obligations under a loan agreement. The guarantee is in the form of a standalone Deed of Guarantee between the guarantor and the lender

Use this document:

• for a guarantee to be given by an individual for a company’s obligations under a loan agreement
• for a guarantee in the form of a standalone Deed of Guarantee
• where the borrower is a company incorporated in England and Wales

What key features are included?

• 13 clauses over 6 pages
• standalone deed of guarantee
• guarantee undertakings given by way of both guarantee and indemnity
• standard creditor protections for the continuing effect of the guarantee
• limit of liability of guarantor for up to a specified amount
• warning notice to guarantor to take independent legal advice

What else do I need to know?

A lender will typically require that an individual guarantor takes independent legal advice before entering into the guarantee. This is done to avoid the possibility of a guarantee being potentially set aside by reason of the guarantee having been given under duress or having been procured by undue influence.  This is particularly the case if the individual guarantor is the husband or wife of a shareholder or director of the corporate borrower.

The lender will also require that the independent legal advisor confirms in writing to the lender that the guarantor has received independent legal advice on the guarantee, that the guarantor understood that advice and is willing to enter into the guarantee. For a form of independent legal advice letter, see

• Individual guarantor: independent legal advice letter.

What other documents are available?

For a form of guarantee to be given by a company (as opposed to an individual), see

• Guarantee: corporate guarantor

For a guarantee clause to be included in a loan or other agreement, see

• Guarantee: contract clause