I am a company director. A couple of years ago my business got a loan facility from the bank, this meant (along with other directors) handing over a personal guarantee to the bank for the loan. All repayments have always been paid on time. However, I am now thinking of leaving the company for a new job and would like to remove myself from this personal gurantee.
Anyone any idea of the process involved??
Thanks.
You will have to get the other directors to take up your portion of the guarantee, the process varies from bank to bank i believe but they will need to re-guarantee the loan between the reminding directors, do they know you are leaving? its not something you can leave until the last few days
Thanks. They do not know I am leaving yet but I would like to have things sorted before I leave. I was afraid of contacting the bank as they might contact the other directors before I had handed in my notice. I didn't want to hand in my notice until I had the personal gurantee sorted..
A lot could depend on how the bank regarded the financial standing of the directors. In their eyes they may have regarded you as a key person and it is possible they may be slow to release you from the guarantee If the guarantee was obtained just to make sure the directors would not ignore the company debt if problems arose your release may be forthcoming without any problem and in some banks a letter signed by the remaining guarantors confirming their agreement to your release would suffice. You should ensure to get a letter from the bank confirming your release