personal guarantee
Backing with self
A personal guarantee is a commitment by an individual to repay a debt if the primary borrower defaults.
Business owners often must sign personal guarantees to secure loans or leases for their companies, making them personally liable even though the business is a separate legal entity: The bank required a personal guarantee before approving the line of credit.
- cosignerSecondary loan obligor
- handshakeMutual palm-gripping gesture
- pledgeBinding promise given
- liabilityLegal or financial obligation
- signatureHandwritten name for verification
sign on the dotted line · backing · promise · word of honor · good faith · surety · bond · vouch · stake · put up or shut up · trust · obligation · default · risk · lender · creditworthy · asset · repayment
- informal agreementsverbal agreement, oral agreement, handshake deal, gentleman's agreement, verbal contract
- loan guaranteesFHA loan, VA loan, surety bond
- debtdebt, creditor, owe, debtor, lender
- business debtbank loan, commercial loan, credit line, line of credit, loan
personal guaranteelimited liability
Capped financial responsibility for owners
corporate liability · corporate veil · non-recourse · liability shield
personal, guarantee, person, persons, personhood, personally, personality, personalities, personalize