Personal Guarantees
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.
UK Unlimited Continuing Guarantee
Prepare an Unlimited Continuing Guarantee of a debtor's indebtedness to a creditor with this template form for the UK.
- This form of Guarantee would most commonly be given by a director or member of a borrower company to guarantee repayment of a loan, credit account, or operating line advanced to the company.
- There is no limit as to the amount that the guarantor is agreeing to repay.
- This is a fully editable form - customise it as you like to fit your business needs.
The Unlimited Continuing Guarantee template is governed by English laws and can be used anywhere in the United Kingdom.
USA Non-Recourse Guaranty of Commercial Lease by Spouse
Have the spouse of the owner of a business tenant provide this Non-Recourse Guaranty of the tenant's lease in order to secure performance of the lease obligations.
- The guarantor is the spouse of a principal of the corporate tenant and is provided in addition to a guaranty made by the principal.
- The landlord requires the guaranty as a condition for accepting the sufficiency of the principal's guaranty.
- The spouse gives the landlord the right to obtain payment of sums due under the lease from property and assets owned by the spouse, whether community or jointly held property or as separate property.
To obtain the Non-Recourse Guaranty of Commercial Lease by Spouse, add it to your shopping cart and check out using one of the payment methods provided.
USA Unconditional Guarantee
When you loan money to a business, you want some assurances that the loan will be repaid even if the business does not survive. Get a shareholder, partner or proprietor of the business to execute this Unconditional Guarantee as security.
- The Guarantee sets out the guarantor's obligation to repay the loan in the event that the borrower defaults.
- The guarantor waives all of his/her rights with respect to notices of default or demand, and any rights regarding redemption or disposition of collateral.
- The guarantor must preserve the collateral pledged under the guarantee.
- The guarantor agrees to pay all of lender's costs to enforce the guarantee.
- This legal template is solely for use in the United States.
