Any advice on how to find a guarantor?
Posted by okwasabii@reddit | AskUK | View on Reddit | 10 comments
I have been provisionally approved for a business loan and need a guarantor to proceed; however I can only rely on myself. It has been giving me headache.
phb71@reddit
For a business loan guarantor you're really looking at close family or a business partner who understands the full liability involved - commercial guarantor services exist but most lenders won't accept them
Slothjitzu@reddit
There are private companies who offer a guarantor service, but they charge a pretty big fee and not all lenders will accept them.
technozen-lotus@reddit
How does one find these companies?
Muntz777@reddit
A guarantor will be fully liable for your default, meaning they can be made bankrupt for your mess (if one occurs). It is not a role that should be taken lightly and I would be strongly suggesting that whoever it is take independent legal advice before they agree to it.
That brings me onto my next point - it needs to be someone, who is not you (obviously). The only way it could be you if you have a company take the loan and you guarantee it - that doesn’t sound like what is happening here.
The guarantor isn’t someone you rely on, it’s for the bank or lender to enforce against.
Most commonly, it’s family or a close friend - or a business partner. They’re not just people you meet on a whim. You probably need to consider who would actually take the risk for you and enter into it - not who you can rely on.
okwasabii@reddit (OP)
I know what a guarantor is. I made this post because I have absolutely no one to ask to be my guarantor. I fully intend to repay everything myself and not create a mess for anyone. I am completely fine with the person taking legal advice also. I was just wondering if there is a way to find someone if you don’t have anyone you’d trust with it.
However, would you mind explaining about the company bit? If I can do it alone, I would rather prefer not putting anyone is a though situation.
Muntz777@reddit
If you have no one to ask you have 2 possible solutions: (1) ask the lender if they’ll lend without one (unlikely) (2) pay a fee to a private company as mentioned in this comment section. There isn’t really another work around I’m afraid.
Careless-Giraffe-623@reddit
Why would anyone put themselves on the line for you? It's. A huge personal risk for them.
carnage2006@reddit
If its a loan for a LTD company, as a director you can be the guarantor, as long as you've got good credit history and normally assets.
If this is a sole trader loan then you'll need someone else. You can't just find them, guarantors are friends\family.
Significant_Return_2@reddit
You need someone you can trust and who trusts you. You should tell them why you need a guarantor, why you’re not able to get the loan without one.
If you know that person, you need to speak to them. Be honest with them, as you could be saddling them with a huge debt.
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