Personal Guarantee Forms
Before you lend money to a business, get a written guarantee of repayment from the business owners with these downloadable and customizable Personal Guarantee Forms.
Most commercial lenders will require a personal guarantee (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.
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.
Buy and download the Unconditional Guarantee template, and get it signed with each business loan you make.
Guarantee Deed and Indemnity | Australia
Lenders in Australia can ensure the repayment of a corporate loan by having a principal of the corporate borrower execute this Guarantee Deed and Indemnity.
- A director, officer, or shareholder guarantees that he/she will repay the company's debt in the event that the company is unable to clear the debt on its own.
- The guarantor also indemnifies the lender with respect to any part of the indebtedness that cannot be recovered from the guarantor.
- This is a continuing guarantee which will remain in effect until all of the borrower's indebtedness to the lender has been paid in full.
- This is a fully editable legal form that can be used anywhere throughout Australia.
- For security purposes, every loan to a corporate entity should include a personal guarantee. You can download this form for your credit office immediately after purchase.
