All Topics / Help Needed! / Banks that do not consider a directors guarantee as a personal liability

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  • charliefaddoul
    Join Date: 2022
    Post Count: 0

    Hey everyone,

    I was wondering if someone could please provide a list of banks and lending institutions that do not consider a directors guarantee as a personal liability.

    All Big4 banks do not allow income to be recycled multiple times, because the directors guarantee is considered a personal liability.

    If someone could provide a list, it would be greatly appreciated.




    Profile photo of Steve McKnightSteve McKnight
    Join Date: 2001
    Post Count: 1,763

    Hello Charlie,

    This has not been my experience, nor the experience of all other’s I know.

    I will do an update on the matter via a webinar soon.

    Remember that the structure only works for +ve cashflow property and you will need to use business bankers. Contact Chris Berry from for more assistance.


    – Steve

    Steve McKnight | Pty Ltd | CEO

    Success comes from doing things differently

    Join Date: 2022
    Post Count: 0

    Hi Steve,

    I find this strange as I spoke to the business bankers of all Big4 banks. I also asked for there managers, which confirmed policy’s that a directors guarantee is a personal liability even for a positive cashflow property.

    All banks had similar reasoning, and when I explained to them that I do not have any loans (since the company that owns the trust does), they said that I still have a guarantee which is a liability, as even if it is positive cashflow, if something goes wrong, they will be chasing me. Perhaps this is a case of ‘who you know’, but certainly I am finding it very difficult to find a connection within the bank that will allow me to borrow this money.

    You also mentioned a webinar, would you please give more details on date and time, as I would love to join and hopefully resolve some of the obstacles I am facing.

    Kind regards,


    Profile photo of TerrywTerryw
    Join Date: 2001
    Post Count: 16,213

    There are banks other than the big 4 – actually one is a big 4 – that will disregard personal guarantees if the borrower is self funded. It is just a contingent liability for the guarantor so they are only liable if the borrower defaults.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide)

    Profile photo of lilyacerlilyacer
    Join Date: 2023
    Post Count: 0

    As a banking professional, I’d like to provide some insights on the topic of banks not considering a director’s guarantee as a personal liability.

    In some cases, banks may require directors of a company to provide personal guarantees to secure a loan or credit facility. This means that if the company fails to repay the loan, the director would be personally liable for the debt. However, there are instances where banks may not consider a director’s guarantee as a personal liability.

    One possible scenario is when the director’s guarantee is limited in scope or capped at a specific amount. For example, the guarantee may only apply to a certain percentage of the loan or may have a fixed monetary limit. In such cases, the bank may not consider it as a blanket personal liability for the entire loan amount.

    – can you get a loan without a job

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