Ltd co - personal guarantee to bank?

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ckc123

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We were incorporated 3 years ago, at the time we were banking with a BOI branch. 6 months ago, the manager moved to another branch and asked us to bring our business with him, which we did.
They are now asking us to sign a personal guarantee on existing loans and overdraft. Do we have to do this , as we are a limited company?
Thank you.
 
As the loans/overdraft are existing, I would refuse point blank. This just sounds like the bank are chancing their arm.
 
ckc123 said:
We were incorporated 3 years ago, at the time we were banking with a BOI branch. 6 months ago, the manager moved to another branch and asked us to bring our business with him, which we did.
They are now asking us to sign a personal guarantee on existing loans and overdraft. Do we have to do this , as we are a limited company?
Thank you.
Click to expand...

no advantage for you to get a personal guarantee at this time. Looks like they are trying to fill holes in their paper work.
 
You need to ask yourself is the co solvent? If not dont give any PG's. OD's are repayable on demand and the bank may withdraw it if no PG is given. However you should resist any PG on the loans. At the end of the day you will need to weigh up the risk versus the benefit of the banks continuing support. You should also put a cap on your exposure under any PG should you need to give one!!
 
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