How-to Guides

Capital On Tap Personal Guarantee: Full UK Guide 2026

By Afshin · 9 May 2026 · 8 min read

Almost every UK Limited Company director who applies for Capital On Tap signs a personal guarantee — often without realising what it actually commits them to. This explains in plain English what the guarantee is, what your real liability is, when Capital On Tap can actually call on it, and how the terms compare to other UK business credit cards.

What a personal guarantee actually is

A personal guarantee (PG) is a legally binding promise from an individual — usually a director — to repay a debt if the company that owes it cannot. With Capital On Tap, the primary cardholder signs a PG covering the full balance, accrued interest, and any fees up to the credit limit on the account.

It's not the same as joint liability. The Ltd company is the primary debtor. The PG is only triggered if the company fails to pay (e.g. enters insolvency, dissolves, or simply refuses to settle). Until that point, your personal credit file is unaffected by company spending.

When Capital On Tap can actually enforce the guarantee

Capital On Tap's PG is enforceable only if all three of these are true:

• The Ltd company has defaulted on the credit card account (typically 3+ missed payments).
• Capital On Tap has formally demanded payment from the company and been unable to recover.
• Capital On Tap then issues a written demand to the personal guarantor.

Your real liability under the guarantee

If Capital On Tap calls on the PG, you become personally liable for the unpaid balance plus interest accrued at the standard purchase APR (29.95% representative variable in 2026), plus reasonable collection costs. You are not liable for any amounts beyond what was already drawn on the card — the PG does not extend to undrawn credit limit.

If you can't pay personally, Capital On Tap can pursue normal debt-recovery routes: a county court claim, a CCJ if you don't defend or pay, and ultimately enforcement (charging order on your home, attachment of earnings, etc). However, this is the last resort — they would rather negotiate a payment plan.

How Capital On Tap's PG compares to other UK cards

Personal guarantees are standard in UK SME credit. Here's how Capital On Tap compares:

• Capital On Tap: PG required on primary director, full balance
• American Express Business Gold: PG required on the Basic Cardmember, full balance + supplementary cards
• Barclaycard Business: PG required for businesses under 2 years old or under £2m turnover
• Tide Cashback Card: No PG (it's a debit-style prepaid card)
• Funding Circle FlexiPay: PG required, revolving up to £250k

How to limit your exposure

You can't avoid the PG entirely with Capital On Tap, but you can limit your real exposure: keep your statement balance low (the PG only covers what's actually drawn), pay in full every month so interest never accrues, and request credit limit reductions through the cardholder portal if you're carrying more headroom than you need. The PG amount is capped at the credit limit, so a £20,000 limit is a maximum personal exposure of £20,000 plus interest — not unlimited.