Personal Guarantees and UK Invoice Finance 2026

Market Invoice is an independent UK invoice finance comparison site that ranks 85 active UK lenders.

Personal guarantees on UK invoice finance protect providers against fraud, ledger misrepresentation and director-led trading down rather than ordinary business losses. Most providers require a director PG capped at 25-100% of the facility limit, but several major UK providers (Aldermore, Skipton Business Finance, Close Brothers, IGF Invoice Finance) will waive PGs at £500k+ turnover with strong debtor profile, audited accounts and no concentration risk. Selective spot factoring from Hydr, Triver, Sonovate and Kriya rarely requires PG at all.

Last updated: 8 May 2026.

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Personal guarantees on UK invoice finance protect providers against fraud, ledger misrepresentation and director-led trading down rather than ordinary business losses. Most providers require a director PG capped at 25-100% of the facility limit, but several major UK providers (Aldermore, Skipton Bus

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Personal guarantees on UK invoice finance protect providers against fraud, ledger misrepresentation and director-led trading down rather than ordinary business losses. Most providers require a director PG capped at 25-100% of the facility limit, but several major UK providers (Aldermore, Skipton Business Finance, Close Brothers, IGF Invoice Finance) will waive PGs at £500k+ turnover with strong de

This Page Covers

personal guarantee invoice finance UK: providers, eligibility, costs, when to use, and how the product works for UK businesses.

Not Covered Here

General invoice finance education (see /guides/), individual provider reviews (see /providers/), full pricing breakdown (see /guides/costs/)

Top UK providers for this product

ProviderFee fromMin turnoverWhy it fits
Aldermore0.7%+£250kPG can be waived for £1m+ confidential discounting
Skipton Business Finance0.5%+£100kPG-free option for low-risk, audited £500k+ businesses
Close Brothers0.5%+£500kPG can be replaced with debenture for £1m+ businesses
IGF Invoice Finance1.0%+£50kPG-free options on selective and turnaround facilities
Hydr1.5%+No minPG-free spot factoring for sub-£50k advances

Do I need a personal guarantee for UK invoice finance?

See the FAQ below for the detailed answer to this question. For broader context on UK invoice finance, also see our how to choose a provider guide and our cost calculator.

How to negotiate out of a personal guarantee on invoice finance

See the FAQ below for the detailed answer to this question. For broader context on UK invoice finance, also see our how to choose a provider guide and our cost calculator.

Best no-PG UK invoice finance providers

See the FAQ below for the detailed answer to this question. For broader context on UK invoice finance, also see our how to choose a provider guide and our cost calculator.

When can a personal guarantee be called?

See the FAQ below for the detailed answer to this question. For broader context on UK invoice finance, also see our how to choose a provider guide and our cost calculator.

Personal guarantee vs debenture on UK invoice finance

See the FAQ below for the detailed answer to this question. For broader context on UK invoice finance, also see our how to choose a provider guide and our cost calculator.

OM

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: 8 May 2026

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Personal Guarantee Invoice Finance Uk FAQ

Do I need a personal guarantee for UK invoice finance?

Most UK invoice finance facilities require a personal guarantee from at least one director, particularly at facility size below £500,000 or for businesses with limited trading history. The PG is typically capped at 25-100% of facility limit. Established providers (Aldermore, Skipton, Close Brothers) will waive PGs for £500k+ turnover businesses with audited accounts, balanced debtor concentration and 12+ months trading. Selective spot factoring from fintechs (Hydr, Triver, Sonovate) rarely requires PG.

When can a personal guarantee on invoice finance be called?

PGs are typically called for fraud (fake invoices, misrepresented ledger, undisclosed customer disputes), serious misconduct, or director-led trading down where the provider can demonstrate the director acted improperly. PGs are NOT typically called for ordinary trading losses or business failure that wasn't director-caused. The standard wording protects providers against bad acts rather than bad luck.

How do I negotiate out of a personal guarantee on UK invoice finance?

Three negotiation levers: (1) demonstrate audited accounts with 2+ years clean trading history, (2) show debtor concentration is balanced (no single customer over 30% of sales ledger), (3) offer alternative security (all-asset debenture, intercompany guarantee, increased reserves on the facility). Best timing: at facility renewal rather than initial setup. Most providers will reduce PG cap to a fixed amount (e.g. £100,000) rather than fully waive on first ask.

What's the difference between a PG and a debenture on invoice finance?

Personal guarantee = director's personal liability for facility losses up to PG cap. Debenture = security over all company assets (cash, receivables, plant and machinery, IP) but no director personal liability. Most established providers prefer a debenture-only structure for £1m+ businesses with strong financials. Debenture gives the provider security over company assets without exposing directors personally.

Can a sole trader avoid a personal guarantee on invoice finance UK?

Sole traders are personally liable for business debts by default (unlimited liability), so a separate PG isn't usually needed. Some sole trader invoice finance facilities still include a contractual personal guarantee for clarity but it adds little to the existing legal liability. Ltd company invoice finance is where PG negotiation matters most.

Do all UK invoice finance providers require personal guarantees?

No. Selective spot factoring from Hydr, Triver, Sonovate and Kriya (Allica Bank) typically doesn't require personal guarantees on sub-£50k advances because the funder takes risk per invoice. Some larger providers (Aldermore, Skipton, Close Brothers) will waive PGs entirely for qualifying £500k+ businesses. The PG requirement is therefore a question of provider, facility size and your business profile rather than a universal rule.