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  3. What is the guarantor process?

What is the guarantor process?

Before signing up to be a guarantor, fully read the Terms and Conditions to make sure you're happy with how the loan works.

Once we receive a signed application from a guarantor, we'll check that they haven't had any trouble paying bills in the past (this is a special type of check that won't affect their credit score).

We will also have a telephone conversation with them to make sure they understand their responsibilities as guarantor and that they can afford to make payments to the loan if the borrower doesn't.

We pay the loan out into the guarantor’s bank account, not the borrower's. We do this to protect against fraud and ensure the guarantor is aware the loan has been paid out. The guarantor can either transfer it to the borrower or give them the cash.

After the loan has been paid out, we will keep the guarantor up-to-date with monthly statements so they can see the repayments being made (statements are also available 24/7 via their online account).

If the borrower misses their payment date, we will notify both the borrower and guarantor as soon as we know, but we will always try and work with the borrower first to bring the account back up-to-date. If we're unable to come to a resolution, or if we can't get hold of the borrower for 14 days, we will contact the guarantor and attempt payment from them, so that they can keep the account up to date.

We’ll only ever ask your guarantor to pay in line with their agreement and in the best interests of you both. Doing so helps prevent any negative implications of the account remaining behind, such as the arrears increasing and the loan term extending.