Director Guarantees on Company Cars
Discussion
Sim75 said:
Is this a common request, as it's just come up as a stipulation on the car i'm after?
I've never really wanted to mix company finances and personal finances.
Just wondering whether it's par for the course, value of the car or the fact we're new to it...?
I haven’t ever heard of this. Although I was asked for a PG for a hire car once I've never really wanted to mix company finances and personal finances.
Just wondering whether it's par for the course, value of the car or the fact we're new to it...?
Did not proceed.I do not recommend mixing personal and company finance.
I was asked for one with a new car this year.
We'd been 'accepted' for finance, car arrived at dealer, had signed the registration documents, arranged a time to collect, added to fleet policy etc. 11th hour request for a director's guarantee which I refused and the sale fell through - then had to issue a "letter before claim" to get the deposit back after repeated refusals including from Head Office. They claimed I was trying to frustrate the process, but I had specifically said no DG on day 1 and was told no problem. I'm the only director of an employee-owned company so there is/should be some distance between me and finance contracts.
Have one van we financed at 1% during Covid (when everyone had bounceback cash) and there was no DG required.
We'd been 'accepted' for finance, car arrived at dealer, had signed the registration documents, arranged a time to collect, added to fleet policy etc. 11th hour request for a director's guarantee which I refused and the sale fell through - then had to issue a "letter before claim" to get the deposit back after repeated refusals including from Head Office. They claimed I was trying to frustrate the process, but I had specifically said no DG on day 1 and was told no problem. I'm the only director of an employee-owned company so there is/should be some distance between me and finance contracts.
Have one van we financed at 1% during Covid (when everyone had bounceback cash) and there was no DG required.
Sim75 said:
Is this a common request, as it's just come up as a stipulation on the car i'm after?
I've never really wanted to mix company finances and personal finances.
Just wondering whether it's par for the course, value of the car or the fact we're new to it...?
Not par for the course. Are you a quite new start up?I've never really wanted to mix company finances and personal finances.
Just wondering whether it's par for the course, value of the car or the fact we're new to it...?
As said, don't do it.
Sim75 said:
2 sMoKiN bArReLs said:
Not par for the course. Are you a quite new start up?
As said, don't do it.
Trading 12+ years.As said, don't do it.
35+ staff
£4-5m Revenue
Fair bit of cash in the bank. North of 500k.
Just not done the car thing before.
22 said:
I was asked for one with a new car this year.
We'd been 'accepted' for finance, car arrived at dealer, had signed the registration documents, arranged a time to collect, added to fleet policy etc. 11th hour request for a director's guarantee which I refused and the sale fell through - then had to issue a "letter before claim" to get the deposit back after repeated refusals including from Head Office. They claimed I was trying to frustrate the process, but I had specifically said no DG on day 1 and was told no problem. I'm the only director of an employee-owned company so there is/should be some distance between me and finance contracts.
Have one van we financed at 1% during Covid (when everyone had bounceback cash) and there was no DG required.
If you were confident that your business would have no trouble paying then what's the issue. Hardly worth the aggro of letting it all fall through surely ? We'd been 'accepted' for finance, car arrived at dealer, had signed the registration documents, arranged a time to collect, added to fleet policy etc. 11th hour request for a director's guarantee which I refused and the sale fell through - then had to issue a "letter before claim" to get the deposit back after repeated refusals including from Head Office. They claimed I was trying to frustrate the process, but I had specifically said no DG on day 1 and was told no problem. I'm the only director of an employee-owned company so there is/should be some distance between me and finance contracts.
Have one van we financed at 1% during Covid (when everyone had bounceback cash) and there was no DG required.
Large multi company director businesses I get (sort of). But sole traders operating through a limited company ?
OddCat said:
If you were confident that your business would have no trouble paying then what's the issue.
Because in business you never know what monster is coming over the hill. Should the world turn wibbly wobbly nobody needs the extra stress of personal attacks.I'm guessing OP is in a limited company with the benefit of personal separation.
2 sMoKiN bArReLs said:
Because in business you never know what monster is coming over the hill. Should the world turn wibbly wobbly nobody needs the extra stress of personal attacks.
I'm guessing OP is in a limited company with the benefit of personal separation.
Maybe it's an accidental benefit and not the core reason ? I'm guessing OP is in a limited company with the benefit of personal separation.
Obviously I'm not guessing or I wouldn't have asked the question.
If you had a good friend who had a limited company, and he asked you to lend some money to his limited company but wasn't prepared to personally guarantee it, would you still do it ?
OddCat said:
2 sMoKiN bArReLs said:
Because in business you never know what monster is coming over the hill. Should the world turn wibbly wobbly nobody needs the extra stress of personal attacks.
I'm guessing OP is in a limited company with the benefit of personal separation.
Maybe it's an accidental benefit and not the core reason ? I'm guessing OP is in a limited company with the benefit of personal separation.
Obviously I'm not guessing or I wouldn't have asked the question.
If you had a good friend who had a limited company, and he asked you to lend some money to his limited company but wasn't prepared to personally guarantee it, would you still do it ?
OddCat said:
Maybe it's an accidental benefit and not the core reason ?
Obviously I'm not guessing or I wouldn't have asked the question.
If you had a good friend who had a limited company, and he asked you to lend some money to his limited company but wasn't prepared to personally guarantee it, would you still do it ?
Exactly why mates and business never mix Obviously I'm not guessing or I wouldn't have asked the question.
If you had a good friend who had a limited company, and he asked you to lend some money to his limited company but wasn't prepared to personally guarantee it, would you still do it ?
Edited by Sim75 on Tuesday 13th August 17:59
Dixy said:
Just tell them no and use a different funding method, at which point I suspect they will back peddle.
Not sure they well.It's a huge high st lender who is underwiting it, and according to the broker (who is brilliant) a bit computer says no when it comes to pushing back.
have asked.
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