Introduction to this document

Demand to guarantor

If you’ve lent money to someone, either personally or through your business, that has been guaranteed by a third party, and you want to call in your debt, use this letter to demand payment by the guarantor.

Joint and several liability?

If there is more than one guarantor, each of them will be fully liable, subject to the guarantee agreement not saying otherwise.

Ensure that you serve notice on each of the guarantors of your intention to call in the debt on the terms of their guarantee.

Whom to sue?

If the matter comes to court, be selective in your choice of guarantor and choose the one with the deepest pockets. You may wish to pursue them all and obtain judgments against each of them. However, do not waste legal fees in enforcing judgment against those without the means to pay. Remember you can ask for each judgment debtor to be examined by the court under oath as to their financial means.

Allow the time to pay

Be reasonable in your timescale for payment from the guarantor. Remember they won’t be expecting to pay up and may not have the means to pay immediately. Therefore, 28 days should be the minimum payment period.