Personal guarantee with RBS

SillySpender

I have a personal guarantee with RBS for a business loan and even though I am repaying the loan interest, they are requesting I pay back the guarantee, as I am selling my house and will have the funds (destined for another business venture). Can they do this when I have done nothing wrong, never missed a payment and have not defaulted on my agreement with them? They are also asking for the full guarantee amount when they have only given me about 20% of the loan so far. Where do I legally stand on this? Bearing in mind I don't want them to call in my loan and cause myself difficulty. Replies appreciated.

inmypocketnottheirs

Well if you are selling the asset against which they hold the security what do you expect them to do?

SillySpender

It's a personal guarantee. It's not against my home. I am selling and re-locating. Also selling my shares in 2 businesses I co-own too. I can afford to pay off the guarantee from either business or the house but would rather not as this would give me a lot less money to put into my new business. I will still keep my business loan with the guarantee it is against and build out the properties as first planned when I got the loan. The money from the development will pay off the bank and give me a good profit without the need for the guarantee. The problem is (as I first stated) that they want the money just now because they see me having plenty funds, but they haven't released the rest of the cash for the build yet. Personal guarantees are the bank's safeguard against the business going down the tubes and the bank not getting their money. I haven't missed a loan payment, so the guarantee shouldn't really come into it at this stage. The other point I wanted help with was if they could charge the full personal guarantee value when they hadn't given the full amount it was secured against under the agreement.