Finance question
Can I get equipment finance without a personal guarantee?
Sometimes, but it is the exception rather than the rule. Most equipment finance carries a personal guarantee from the directors. On stronger profiles, or where extra security or a deposit is offered, some lenders will consider reducing or removing it, subject to lender assessment.
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The short answer
Guarantee-free deals exist, but you have to earn them
A personal guarantee is standard on most equipment finance. It gives the lender recourse to the director if the business cannot pay, and it is a big part of why asset finance is available to smaller businesses at all. Expecting no guarantee at all is the exception, not the norm.
That said, it is not fixed on every deal. A strong, established business with clean financials, good asset backing or a solid trading history gives a lender more comfort. On those profiles, some lenders will look at limiting the guarantee, and a larger deposit or added security can help the case.
Structure is where a broker earns its place. Running your profile across 40+ lenders shows who is likely to soften the guarantee terms and who will not move. We present the strengths of the business properly, so the request is judged on the full picture rather than dismissed.
Do you qualify?
What strengthens a guarantee-light request.
An established business
Trading history and clean financials give lenders comfort.
Extra security
Additional asset backing can offset a reduced guarantee.
A deposit
More equity in the deal lowers the lender's risk.
A solid company structure
A well-run entity is easier to assess than a thin one.
Why the guarantee is usually there
It carries the risk
The guarantee is why lenders extend finance to smaller businesses.
Strength buys room
The stronger the profile, the more a lender may soften terms.
Lenders differ
What one insists on, another may reduce for the right deal.
A real example
An established company with three years of clean financials and existing assets wants a $200,000 machine without a full personal guarantee. On a bank it is a flat no. Presented with the trading strength and a deposit, a lender agrees to limited guarantee terms on the asset. Illustrative only.
Common questions
Frequently asked questions
Is a personal guarantee always required?
Not always, but it is the norm. Removing or limiting it is possible on stronger profiles or with added security, subject to lender assessment.
Does a deposit help remove the guarantee?
It can. A deposit lowers the lender's risk, which gives more room to negotiate the guarantee terms.
What makes a lender comfortable reducing it?
An established business with clean financials, good asset backing and a solid structure gives a lender the confidence to consider it.
Can a broker find a guarantee-free lender?
A broker checks across 40+ lenders to see who will soften the terms for your profile. It is never guaranteed, but the right match makes it possible.