Definitions for "Personal Guaranty"
The guarantee of someone to be individually responsible for the obligations under the lease. Generally, when financing closely held subchapter S companies and small businesses, a leasing company may ask for a personal guaranty as a way to insure that the lease payments will be made.
Commitment by business owner to repay the business's debt in the event of default.
Usually the owner(s) of a corporation cannot be held personally responsible for a corporation's debt. If a loan requires a "personal guaranty" it means that the lender is asking the owner to personally guarantee the debt should the corporation default.
Keywords:  contract, lender, individual
a contract between an individual and the lender