Personal Guaranty Addendum (to a Lease Agreement)
Personal Guaranty Addendum (to a Lease Agreement)
Nov 29, 2017
eforms.com
A personal guarantee (or PG) is something a lender or creditor may require when you take out a loan or a credit card. It holds you, the business owner, personally responsible for the debt in the event your business cannot pay it back. It’s similar to how a lease may require parents, for example, to be the guarantors if a student were to sign. However in this case, you are the guarantor for your business. Many business owners don’t like PG’s, which is understandable. However, in the early days of
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A personal guarantee (or PG) is something a lender or creditor may require when you take out a loan or a credit card. It holds you, the business owner, personally responsible for the debt in the event your business cannot pay it back. It’s similar to how a lease may require parents, for example, to be the guarantors if a student were to sign. However in this case, you are the guarantor for your business. Many business owners don’t like PG’s, which is understandable. However, in the early days of
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Standing as a guarantor is not just helping a friend ,it is a legal obligation. Once you sign as a guarantor, you promise the lender that if the borrower fails to pay, you will pay the debt instead. Many people sign guarantee forms without understanding the risk. Before you agree to guarantee someone’s loan, make sure you understand that the law treats you as a person responsible for the debt if the borrower defaults. Always read and understand what you are signing #LegalTips #KnowYourRights #La
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