Glossary
A promise by an owner to be personally responsible for the debt if the business does not pay.
✓ Checking what you qualify for does not affect your credit score.
A promise by an owner to be personally responsible for the debt if the business does not pay.
It extends liability beyond the business to named individuals. The terms and triggers are set in the agreement.
It is a significant commitment and should be a conscious decision.
A guarantee on a $60,000 payback may make the owner liable if the business defaults.
Terms vary by funder and file. Ask exactly what the agreement requires.
Reviewers confirm whether a guarantee is required and by whom. The agreement defines its scope: some guarantees trigger only on specific breaches, others on any default. Owners should read the trigger clauses closely, because the scope is the real risk.
A guarantee is sometimes assumed to apply only if the business fails. Many apply on defined breaches that can occur even in a healthy company.
No. Terms vary by funder and file.
See the related guides and the comparison pages, or apply and ask.
No. It is educational information, and agreements vary.
Educational information only. It is not legal, tax or accounting advice.
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