The Personal Guarantee Loan: What it Means for Your Business
When starting a small business, you may be required to provide what is called a personal guarantee for any business loans you take out. A personal guarantee exposes your personal assets to legal action and collection by lenders if you should default on your loan. However, personal guarantee loans also help small businesses get their start and provide money for unexpected expenses.
Since small business owners are the types of borrowers who most often have to sign a personal guarantee, we will talk about the various types of personal guarantees and what they mean for you and your business.