Business loan without a personal guarantee: can a company get one?

Lenders ask for a director guarantee when they have nothing else to fall back on, most often on unsecured loansA loan where the company does not give the lender a charge over specific assets. to younger companies, companies with thin accounts or companies with arrears on the record. Our personal guarantee guide explains when and why lenders ask in more detail.

Some lenders ask for a guarantee as standard. Linked Finance, for example, states that a personal guarantee is required on its term loans, merchant cash advanceA form of finance where a provider advances a lump sum in return for a fixed percentage of the company's future card takings until an agreed total is repaid. and BillPay product. Others decide case by case.

No product guarantees you will avoid one, as each lender decides for each application. But some structures make it less likely.

SBCI Growth and Sustainability Loan Scheme (up to €500,000)

Under the State-backed Growth and Sustainability Loan Scheme, loans up to €500,000 are unsecured and generally have no personal guarantee, subject to certain exceptions. Loans above €500,000 may need security, at the lender’s discretion; any personal guarantee is capped at 20% of the loan. Your company first gets an eligibility code from the SBCIA State-owned body that makes low-cost funding and loan guarantees available to Irish SMEs, farmers and fishers through participating banks and non-bank finance providers., then applies directly to a participating lender: AIB, Bank of Ireland and PTSB, with Close Brothers and Finance Ireland due to start taking applications (announced 12 October 2026). Welcome Finance does not arrange SBCI loans. Our SBCI scheme guide explains the process.

Asset finance

With hire purchase or leasing, the lender owns the vehicle or equipment until the final payment, so the asset itself is the main security. Established companies buying assets with good resale value are more likely to be offered terms without a guarantee, although many lenders still ask for one from younger companies. See our guide to hire purchase vs leasing.

Invoice finance

Invoice financeAn umbrella term for funding secured on a company's unpaid invoices, so cash comes in before customers pay. lends against unpaid invoices from creditworthy business customers. The lender relies mainly on your customers paying, though many facilities still include a director’s indemnity or guarantee covering issues such as disputed invoices. Read our guide to factoring vs invoice discounting.

Merchant cash advance and revenue-based finance

Because repayment comes from a share of future sales, some providers do not ask for a guarantee. 365 Finance’s Irish merchant cash advance page says you do not need to provide a personal guarantee, and Wayflyer says it does not take personal guarantees for its revenue-linked funding. Other providers, including Linked Finance, do require one. Read our guides to merchant cash advance and revenue-based finance.

Secured company borrowing

A company that owns property or significant assets can offer a debenture with a fixed charge or floating chargeSecurity over a changing pool of assets, such as stock, book debts or cash, which the company can continue to trade with in the normal course of business. over its assets instead of, or alongside, a guarantee. Charges are registered with the CROThe State body that registers Irish companies and business names and keeps their public filings, including constitutions, director details, annual returns, financial statements and registered charges.. Our guide to secured vs unsecured business loans explains how company security works. This is more common with banks and larger facilities, and the lender will want a recent valuation of the assets offered.

• Unsecured non-bank term loan: often required, especially for younger or smaller companies.
• SBCI GSLSA State-backed SBCI scheme offering loans of €25,000 to €3 million over seven to 10 years through participating lenders, for long-term growth, resilience or climate action projects. loan up to €500,000: generally not required, subject to certain exceptions.
• SBCI GSLS loan over €500,000: possible, capped at 20% of the loan.
• Hire purchaseA form of asset finance where the company pays for an asset in instalments, often after a deposit, and takes ownership once the final payment and any option-to-purchase fee are made. or leasing: sometimes required; less likely for established companies buying assets with strong resale value.
• Invoice finance: often a limited guarantee or indemnity for invoice problems.
• Merchant cash advance or revenue-based financeFunding repaid as an agreed share of a company's future revenue rather than through fixed monthly instalments, so repayments flex with sales.: varies by provider; some say they do not require one.
• Bank loan with a debentureA legal document in which a company gives a lender security over its assets, usually through a combination of fixed and floating charges. over company assets: depends on the strength of the security and the accounts.

When a lender considers lending without a guarantee, it is asking one question: if things go wrong, how else will we get repaid? The stronger your answers to the points below, the stronger your negotiating position.

• Trading record: several years of filed accounts showing consistent profits, not just one good year.
• Net assets: a balance sheet where the company’s own reserves are meaningful compared with the amount you want to borrow.
• Cash flow: bank statements that show repayments can be met comfortably, with no regular unpaid direct debits or overdrawn periods.
• Debt service cover: lenders often look at how many times your operating cash flow covers total loan repayments. Our DSCR calculator shows how this ratio works.
• Tax and filings: up-to-date Revenue returns, a tax clearance certificateConfirmation from Revenue that a company's tax affairs are in order. and CRO filings with no late penalties.
• Clean credit record: no arrears or defaults on the company’s or directors’ Central Credit Register reports.
• Involvement: directors who are active in the company. Lenders sometimes ask for guarantees from people who are not directors, so check who is being asked to sign.

If your company is strong on most of these points, ask the lender directly whether it will lend without a guarantee, or with a limited one. If it is weak on several, it is usually better to fix those first, or to choose a secured product, than to keep applying for unsecured loans and leaving enquiries on the CCR.

Taking away a guarantee shifts more risk to the lender, and lenders price for risk. In practice, a no personal guarantee business loan may come with a smaller amount, a shorter term or a higher cost than an offer backed by a guarantee. Ask for both versions if a lender is willing to quote them.

Illustrative example: two versions of the same request

1. File your accounts with the CRO on time. Up-to-date filed accounts are the first thing most lenders check.
2. Keep your tax affairs current so you can show a tax clearance certificate.
3. Build the company’s balance sheet by retaining profits rather than drawing everything out.
4. Choose a product that matches the security you have: assets for asset finance, invoices for invoice finance, card takings for an MCA.
5. Borrow less, or over a shorter term, so the lender’s risk is lower.
6. Compare lenders before applying. Our neutral directory of business lenders in Ireland shows who lends what.
7. If a guarantee cannot be avoided, negotiate it rather than refusing outright: see how to negotiate or limit a personal guarantee.

If a regulated lender does insist on a guarantee, the Central Bank’s SME Lending Regulations (S.I. No. 585 of 2015) require it to explain in writing why it is needed and what the consequences could be, and to include prescribed warnings in the document. Our personal guarantee guide covers your rights as a guarantor. Not every non-bank provider is regulated for every product, so check the lender’s status first.

Sole traders and partnerships cannot apply through Welcome Finance. Start-ups registered as limited companies in Ireland can apply. Most lenders look for some trading history, so options may be fewer for a new company. Microfinance Ireland lends to micro-enterprises, including sole traders, partnerships and start-ups, and your Local Enterprise Office can help with the application. See our comparison of Microfinance Ireland and non-bank business loans and our guide to small business loans in Ireland.

Our lender panel covers unsecured and short-term business loans, working capital, merchant cash advance, revenue-based finance, and stock and trade finance. When you tell us what your company needs, we can tell you which lenders on our panel may consider your company, and whether they usually ask for a personal guarantee; we do not give financial advice. For other products, such as asset or invoice finance, we will tell you whether our panel can help or where to apply instead. Welcome Finance is a commercial finance broker, not a lender, and is not regulated by the Central Bank of Ireland. We work only with companies registered in Ireland (LTD, DAC, PLC or ULC), we are paid commission by lenders and do not charge your company a fee. We never ask for payment upfront.