Loan Guarantee Agreements

Loan Guarantees and Indemnities

A  Loan Guarantee is used where the lender in a financing arrangement wants the borrower to provide additional security before financing the loan.

Simply-Docs offers various forms of guarantees in the Loan & Finance Documents Folder; a personal guarantee, an ‘all monies’ guarantee, and limited and unlimited guarantees (long and short forms). The Business Folder has additional guarantees for the supply of goods and services.

Each of the guarantees in this folder is a legally binding document, that allows for one party (the guarantor) to agree to assume liability for the payment obligations of another (the borrower) under a separate agreement. The parties to the underlying loan agreement are the lender and the borrower, whereas the parties to the guarantee are the guarantor and the lender.

Frequently, the document referred to as a ‘guarantee’ actually comprises a guarantee and also an indemnity. A guarantee and indemnity offers more protection to the beneficiary of the guarantee (the lender) than a simple guarantee.  All of the Simply-docs guarantees, with the exception of the Personal Guarantee, contain both a guarantee and an indemnity.

The Loan Guarantees folder contains a Checklist to use when choosing which Loan Guarantee to use.

There are short and long form limited Guarantee Agreements. The Limited Guarantee Agreements contain a provision that limits the maximum amount of money for which the guarantor may be liable.  The short form version is best suited to guaranteeing smaller loans, as it provides less protection. The Long Form Limited Guarantee Contract has extensive provisions and is suited to larger transactions.

If unlimited liability is required from the guarantor, the Unlimited Guarantee Agreement – Short Form and the All Monies Guarantee are available for download.


Loan Guarantees are part of the Corporate folder. Access all Corporate documents for £35+VAT.