Have you been asked to provide a personal guarantee?

In today’s post let’s clear up the confusion surrounding the PG. After reading this post you’ll know what is a personal guarantee, what it’s not, ways to get around supplying a PG and why in some cases you can’t avoid it.

What is a personal guarantee?

In a nutshell, a personal guarantee is a written promise from a business owner guaranteeing that payment will be made in the event that the business fails to pay. Whether the business enters into a lease, applies for a business loan or line of credit, you’ll find that many creditors will require a personal guarantee to secure financing especially if you’re a small business.
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