Invoice Finance With No Personal Guarantee
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.
Provider Personal Guarantee Requirements
| Provider | PG Required? | Notes |
|---|---|---|
| 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.
Oliver Mackman
Director, Market Invoice
Oliver leads Market Invoice's editorial and comparison research. With a background in UK commercial finance, he oversees provider analysis, rate verification, and industry reporting across all verticals.
Last reviewed: 5 April 2026