I am a director of a Limited Company and for various suppliers I have been asked to sign a personal guarantee for credits supplied to the company.
The credit limits agreed are £10k with two directors supplying personal guarantees. One of the companies has said that they are willing to extend further credit on an ad-hoc basis. My question is, if the company fails and the outstanding credit is greater than the agreed credit limit then would I be liable for the full amount outstanding, or is my liability limited to the amount of credit on the legal document that I would be signing. I am happy to guarantee the £10k but wouldnt be happy if I was liable for more than that.

Please can someone clarify my legal position.