Commercial Finance Guides
Security, personal guarantees and commercial funding
A plain-English overview of security considerations that may arise during commercial funding conversations.
6 min read · Last reviewed 2026-07-15 · General information, not financial or legal advice.
Security depends on the facility and lender
Some funding routes are secured against property, assets or business receivables. Others may involve director support or personal guarantees.
The position varies by lender, facility type and applicant circumstances.
Ask what is being secured and why
Applicants should understand what a lender is asking for, what obligations are created and what could happen if repayments are not maintained.
Where appropriate, independent legal advice should be taken before signing security documents.
Security is part of the overall decision
Pricing, fees, term, repayment structure and security should be considered together. A lower headline rate is not the only factor.
The right conversation is about the full set of terms and whether the route fits the commercial objective.