financial guarantee
Contractual repayment assurance
A financial guarantee is a promise to cover a debt or obligation if the original borrower fails to pay.
Banks, insurance companies, or wealthy individuals provide guarantees to make loans possible or reduce risk: The parent company provided a financial guarantee for its subsidiary's bonds.
The guarantor becomes liable if the primary party defaults.
- guarantorOne pledging another's obligation
- surety bondThird-party payment guarantee
- co-signerJoint debt guarantor
- letter of creditBank-backed payment promise
- secured loanBorrowing with pledged collateral
obligee · contract · indemnity · signature · trustee · insurer · fiduciary duty · underwriter · creditor · bankruptcy law · escrow account · lien · pledge · promissory · covenant · mortgage · deposit · surety
- paperworkinvoice, permit, documents, license, filing
- guaranteeswarranty, guaranty, pledge, oath, promise
- surety bondsbonding company, obligee, bail bonds, underwriter, guarantor
- indemnityhold harmless, reimbursement, exoneration, reparation, redress
financial guaranteeunguaranteed
Without formal assurance
handshake deal · unsecured loan · unsecured debt · unbacked · at your own risk
financial guaranteehandshake deal
Unwritten mutual commitment
gentleman's agreement · verbal promise · implied agreement · honor system
financial guaranteeunlimited liability
Personal obligation for all debts
caveat emptor · buyer beware · no safety net · at your own risk