Before you lend money to a business, get a written guarantee of repayment from the business owners. Buy a downloadable easy-to-use Personal Guarantee Form.
Most, if not all, commercial lenders will require a personal guarantee (or guaranty) from the principals of a business before they extend credit facilities to that business. Lenders look at a personal guarantee as a sign that the principals have faith in their business and in its ability to pay its debts, and that they intend to honor the company's commitments. A lender may not want to risk a bad loan if a business owner is not willing to take the risk of having to repay it if the business goes under.
A personal guarantee gives the lender the means to go after the personal assets of the guarantor if the company defaults on its obligations. That is why lenders and lessors generally require them, and as the percentage of businesses going under increases, the requirement for personal guarantees from directors and business owners will increase as well.
Obtain a personal guarantee for repayment of the debts of a corporate borrower with this Guarantee and Postponement of Claim.
This form is for the Province of Alberta.
The Guarantee is given by a principal of the corporation (such as a director, shareholder, sole proprietor), to guarantee repayment of the borrower's indebtedness to a lender if the borrower defaults in paying back the debt.
The guarantor also agrees that any debts owed by the borrower to the guarantor will be postponed to the debts owed to the lender, and the lender's claims would take priority.
A Guarantee and Postponement of Claim secures repayment of your debt. If you lend money or extend credit to customers in Alberta, you should have this form.
Guarantee the performance of a corporate lessee's obligations under a lease with this Guarantee of Commercial Lease form for the Province of Alberta.
The guarantee is given by a principal of the company, such as a shareholder, partner, sole proprietor or some other person with a financial interest in the tenant.
The guarantee is unconditional and continuing.
A guarantee of this type is typically required as an inducement to the lessor â„ landlord to sign the lease.
If the lessee is unable to do so, the guarantor agrees to pay all rent and other amounts due under the lease, including the payment of legal fees incurred by the landlord in enforcing the terms of the lease.
Don't risk having a business tenant default on its lease obligations. Always get a Guarantee signed at the time the commercial lease is executed. Download the Guarantee form today.