Personal Guarantee Form Template​

The Personal Guarantee effectively makes the individual's personal assets, such as property or savings, liable for the business's debt, thereby increasing the lender's chances of debt recovery in the event of business insolvency. As a result, offering a Personal Guarantee can facilitate access to financing for a business by providing lenders with an added layer of security.

Entering into a Personal Guarantee involves significant personal risk, as the guarantor is legally bound to cover the business's debts, which can lead to personal financial difficulties if the business cannot meet its financial commitments. Therefore, individuals considering providing a Personal Guarantee should thoroughly assess their capacity to bear this risk and may seek independent legal advice to understand the implications fully.