The following is part 1 of a 6 part series on credit applications and the terms and conditions that accompany them. The purpose of these blogs is to enlighten you as to the various pitfalls of terms and conditions documentsRead article
What Is a Personal Guarantee?
A personal guarantee is a promise or agreement to make yourself personally liable for a debt. For example, if you personally guarantee the debts of your business, your lender can pursue the assets owned by the business as well as your personal assets if your business defaults on the loan. If your business cannot afford to pay the loan and it does not have enough assets to pay back the loan you guaranteed, the creditor can sue you to collect the balance.