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.
A contract by one person to pay the debt of another in the event that other person defaults. For example, a promise by a director of a nonprofit corporation to pay a bill of the nonprofit corporation if the nonprofit corporation fails to do so.
A non-standard requirement to secure a business loan where the lender asks a corporation's owner(s) to personally guarantee the debt should the corporation default.
A contractual agreement between a funding source and a seller, whereby the seller assumes personal responsibility and liability for the obligations of the income stream.
The guarantee of someone to be individually responsible for the obligations of the lease. Generally for Subchapter S closely held companies and small businesses, a lessor may ask for a personal guaranty as a way to insure that the lease payments will be made.
A pledge made by the operator or owner of a business which obligates the operator or owner to personally repay some or all of the debt of a business should the business default on its payment obligations.