Called on a personal guarantee? Have the guarantee read first, then look at funding.
- Some non-bank and specialist lenders can fund within 2 business days of a complete file, with bank options where the date allows
- Loans from $50K to $5M to pay a guaranteed debt or refinance the business borrowing behind it
- Directors, business owners and guarantors facing a demand from a lender, a landlord or a supplier
- Covers guaranteed business loans, overdrafts, equipment finance, rent arrears and trade accounts
- Full-doc (tax returns), low-doc or alt-doc (BAS, bank statements or an accountant's letter instead) and no-doc options across our 90+ lender panel
A business debt is now addressed to you personally, with a date to pay it. That happens when a lender, landlord or supplier calls on a personal guarantee you signed for the business. It is a lot to take in, and some steps come before any loan. Start with a lawyer, who can read the guarantee and tell you what is actually owed. If paying or refinancing is the right step after that, personal guarantee finance is a loan used to pay the guaranteed debt or refinance the business borrowing behind it. It is secured against business or personal property. Joseph Farhat and his team can look at the amount, the property available and the date on the demand, and tell you early what the panel can do.
Who we can help access finance
- Directors whose company lender has demanded payment under their guarantee after the business fell behind on a loan or overdraft.
- Business owners whose landlord has called a guarantee for rent owed on the business premises.
- Directors whose supplier has called the guarantee they gave when the trade account was opened.
- Guarantors whose business is still trading and wants to refinance the guaranteed debt onto terms it can meet.
- Owners with equity in commercial premises, an investment property or their home, who are weighing up whether to borrow against it after legal advice.
- Two or more directors who signed the same guarantee and want to work through the funding together.
How Personal Guarantee Finance Works
A personal guarantee is a promise to pay a business debt yourself if the business does not. When the creditor calls on it, the creditor is asking you, as guarantor, to pay. MoneySmart says a guarantor may have to repay the whole loan plus interest. It also says the lender may sell an asset used as security, including a home, and that a default can go on the guarantor's credit report. What a demand covers in your case depends on the wording of your guarantee and the debt behind it, which is why a lawyer reads it first.
Funding takes one of two shapes. The business can refinance the guaranteed debt with a new lender on terms it can meet. Or the business, or you, can borrow against property to pay the amount demanded. Either way, the old debt is paid and a new one takes its place. A new lender will usually want a guarantee from the directors as well, so the personal exposure moves to the new loan rather than ending. Joseph Farhat and his team look at the demand, the business position and the security available, then match the file to our panel of 90+ bank, non-bank, and specialist lenders.
We are a finance broker, not a lawyer, accountant or registered insolvency practitioner. A lawyer can tell you what the guarantee covers and whether the amount demanded is right. An accountant can tell you whether the business can carry new repayments. If the business may not be able to pay its debts as they fall due, a registered insolvency practitioner comes before any new borrowing. MoneySmart also notes that responsible lending obligations do not apply to business loans, which is one more reason to get independent legal advice before you sign anything new.
What Lenders Assess for Personal Guarantee Finance
The demand and the guarantee
the amount, the date to pay, who the creditor is, and your lawyer's view of what is owed.
Whether the business is still trading
lenders look for evidence it can meet the new repayment, usually bank statements, BAS and the accountant's view.
The security offered
business premises, an investment property or a home. The loan-to-value ratio (LVR), the loan as a share of the property's value, counting any existing mortgage, sets how much is available.
Who borrows and who guarantees
a loan to the business secured over a director's property usually needs a mortgage and a guarantee from that director, each with its own documents.
The credit history
any default listed against the business or against you as guarantor, and how recent it is.
The exit
whether the loan is repaid from trading over a longer term, refinanced to a lower rate once the position settles, or cleared by a property sale.
The Personal Guarantee Finance Process: What to Expect
- Ask a lawyer to read the guarantee and the demand. They can confirm what is owed, by when, and what choices you have.
- Speak with your accountant about whether the business can carry new repayments. If it may not be able to pay its debts, see a registered insolvency practitioner before borrowing.
- Send Joseph Farhat and his team the demand, recent business statements and details of any property that could be security. You get an early view of what is achievable by the date on the demand.
- We match the file to lenders, and the approval sets out the rate, fees, term, security and any guarantee the new lender requires. We take you through the total cost, and your lawyer reviews the documents before you sign.
- At settlement, funds pay the creditor. Your lawyer can then ask the creditor to confirm in writing that the debt is paid and what happens to the old guarantee.
Indicative Finance Options
| Lender Type | Indicative Rate | Security | Typical Loan Range | Loan Term | Speed to Funding |
|---|---|---|---|---|---|
| Bank | From ~7% p.a. | Property security usually required | $100K to $5M | 1 to 15 years | 2 to 6 weeks |
| Non-Bank Lenders | From ~9.5% p.a. | Property or business assets | $50K to $3M | 3 months to 5 years | Within 2 business days |
| Private Finance | From ~1.2% per month | Property security | $100K to $5M | 1 to 24 months | Available for unique scenarios |
Indicative figures only. Actual rates and terms depend on your project, financial position, property location, and lender assessment at the time of application. Rates are subject to change.
Why borrowers choose Settled With Joe for personal guarantee finance
We represent you, not the lender
Joseph Farhat and his team act for you, the guarantor, from the first call through to settlement.
Your lawyer goes first
the loan is sized to the amount your lawyer confirms is owed, not simply the figure on the demand.
Straight answers on the new guarantee
you will know up front whether a lender wants a guarantee, from whom, and over what property.
Two routes side by side
refinancing the business debt and borrowing against property are compared, with the total cost of each.
Lenders matched to the creditor's date
a lender is chosen for whether it can settle in time as well as on price.
One conversation, not several applications
each credit enquiry is recorded on your credit file, which matters when your own name is on the demand.
90+ lenders on one panel
bank, non-bank, and specialist lenders, assessed against the business, the security and the date to pay.
Private finance for unique scenarios
where bank and non-bank lenders are not the right fit, we can introduce you to private finance options.
Usually no direct cost to you
as a broker we are typically paid by the lender on settlement.
An honest answer early
send the demand with its date to pay, and we will tell you what is realistically achievable before then.
Frequently asked questions
What does it mean when a personal guarantee is called?
A personal guarantee is your promise to pay a business debt if the business does not. When the creditor calls on it, it is asking you to pay under that promise, usually by a stated date. MoneySmart says a guarantor may have to repay the whole loan plus interest. The exact amount, and what the creditor can do next, depend on the guarantee wording and the debt it backs, so ask a lawyer to read both. Personal guarantee finance is a loan used to pay the guaranteed debt or refinance it, where that is the right step.
Can I refinance the business debt to release the guarantee?
Sometimes, but the guarantee terms decide that, not the refinance. Paying out a debt does not on its own mean the guarantee ends. MoneySmart warns guarantors to take care with facilities that have no end date, such as an overdraft. Ask your lawyer to confirm in writing with the creditor what happens to the guarantee once the debt is paid. Expect the new lender to ask for a guarantee of its own, so the personal exposure usually continues on the new loan.
Will a new lender want a guarantee too?
Usually, yes. Most lenders ask directors to guarantee a loan to their company, and many ask for property security as well. Banks that subscribe to the Banking Code of Practice 2025 must state in the guarantee terms that the guarantor should seek independent legal and financial advice and can refuse to sign. Lenders that do not subscribe to the Code are not bound by it. Either way, get independent legal advice on any new guarantee before you sign. Joseph Farhat and his team will show you what each lender requires before you choose.
What if my home is security?
Then the stakes are high, whether the home already secures the guaranteed debt or you are thinking of offering it for a new loan. MoneySmart notes that a lender may sell an asset used as security, including a home, if the debt is not repaid. Borrowing against your home to pay a business debt ties the home to the business repayments. Get independent legal advice before signing any mortgage or guarantee, and ask your accountant whether the business can keep up the new repayments. Joseph Farhat and his team will set out each lender's security requirements and the total cost, and will tell you if a route using other security is available.
What if the business cannot pay its other debts either?
Then new borrowing is not the place to start. Speak to your accountant, and to a registered insolvency practitioner if the business may be insolvent. As a guarantor you also have a personal position to protect, so a lawyer's view of your own exposure matters at the same time. A loan is a fit only where the business can keep trading and meet the new repayment. If it cannot, we will tell you plainly.
Can the loan be arranged with low-doc or no-doc paperwork?
In many cases, yes, where the loan is secured over property with enough equity. Some lenders on the panel focus on the security and the exit rather than full financials, and no-doc options exist for some commercial loans. The trade-off is a higher rate and a lower LVR. A lender will still want to see the demand and understand how the new loan will be repaid.
Do you work with borrowers with bad credit?
Yes, we do. A default on the business, or one listed against you as guarantor, does not rule you out, and there is no judgement here. MoneySmart notes that a default can go on a guarantor's credit report, so your file and the business file may show the same hard period. Several lenders on our panel weigh the security, the equity and the plan to repay more heavily than the credit history, and they set the price to match. Let us know at the start, so the file goes first to a lender likely to consider it and fewer enquiries land on your file. Joseph Farhat and his team will tell you honestly what is achievable before you apply anywhere.
Why work with Settled With Joe to arrange your personal guarantee finance?
Because you get one conversation, at a time when your own name is on a business debt. Most of the people we help with a called guarantee are directors and business owners with a dated demand from a lender, a landlord or a supplier, sometimes after the business has had a run of slow months. Those situations are not unusual to us and there is no judgement in the conversation. What counts with a lender is the security available, whether the business can carry the repayment, and a clear way to repay. Our panel covers 90+ bank, non-bank, and specialist lenders, so a well-documented file can go to a bank at a sharper rate, and there are still options when the date to pay is close. We are based in Sydney and work with borrowers Australia-wide. Joseph Farhat and his team will tell you honestly and early what can be done before the date on the demand.
Do you give financial advice?
No. We do not guide you on your finances, nor give financial advice. We focus on outcomes and solutions of presenting your unique scenario to the right lender so you can access funding in a timely and compliant manner.
Do you help with personal guarantee finance outside Sydney?
Yes. Settled With Joe is based in Sydney and arranges personal guarantee finance Australia-wide, covering both metro and regional areas. We work with clients in Sydney, Melbourne, Brisbane, Perth, Adelaide, and Canberra, as well as regional areas including Newcastle, Wollongong, Geelong, Gold Coast, Sunshine Coast, and Toowoomba. Where the property offered as security is in another state or a regional area, Joseph Farhat and his team will look for lenders and valuers that cover that location.
