Brexit puts thousands of Company Directors ‘at risk’ with personal guarantees for finance

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Bespoke Risk Solutions launches a new insurance product to mitigate risk

Bespoke Risk Solutions (‘BRS’) today announced today the launch of a new a facility with Purbeck Insurance Services (‘Purbeck’) that might provide Company Directors insurance cover in the event there is a call on their personal guarantee by a lender.

In July this year, the Independent newspaper (1) reported that the ‘whole EU finance system faces a tipping point’. With financial institutions quitting the ‘City’, businesses will see opportunities to access lending diminish. The net result of this, commented Peter Collins (Managing Director or BRS) “might be that in order to apply for finance, more and more Company Directors will need to offer personal guarantees." However, with every personal guarantee comes risk, and earlier this year, the Daily Telegraph (2) reported how many Company Directors (in particular from start-ups) are at risk because they do not fully understand the implications of the personal guarantee that they have undertaken on their own finance and in some cases could lose their homes.

Personal guarantees are agreements that legally bind a business director to take a certain level of financial responsibility for his or her company’s debts in the event that they cannot be paid back by the business itself. It is anticipated that post-Brexit, organisations will seek a higher level of personal guarantees as they become increasingly ‘pickier’ about whom they lend to. However, in the unfortunate event the borrowing business becomes insolvent, the lender may call on the Directors’ personal guarantee to recover any shortfalls due on the finance obligations that the business owes to the lender.

Start-ups could also suffer a double-whammy as European funding pots such as the European Regional Development and Single Local Growth Funds disappear post-Brexit, meaning that they will have to seek finance from high-street lenders.

Recognising this trend, BRS is delighted to partner with Purbeck and be able to offer a Personal Guarantee Insurance facility. The facility will provide online indications to those Directors that qualify in minutes.

BRS has carved out a niche in the insurance sector providing tailor-made risk and insurance products as well as review services for SME businesses and their advisors. The BRS Personal Guarantee Insurance facility is underwritten by Purbeck and is backed by an A-rated leading insurer. Full details are available on the BRS website Applications can be made online at

The Federation of Small Businesses recently published a policy paper (3) on what small firms want from Brexit in terms of funding and the FT newspaper reported ‘business is confused and dismayed’ at the government over Brexit (4).

The government’s ‘Access to Finance 2016-17 Report’ states ‘we acknowledge that the decision taken on the 23 June 2016 to leave the EU is likely to have repercussions for access to finance.'



Bespoke Risk Solutions Limited is authorised by the Financial Control Authority (Firm Reference No. 540579) to conduct Non Investment Insurance Contracts as an Appointed Representative of Leisureworld GB Ltd (Firm Reference No. 749920). The principal trading address of Leisureworld GB Ltd is Greenacres, Victor Gardens, Hockley, Essex, SS5 4DY. You can check this by visiting the FCA website at

© 2017 Bespoke Risk Solutions Limited


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Sarah Brockwell
since: 03/2010
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