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In this Maverick Minute tutorial, the concept of personal guarantees in business financing is discussed. A personal guarantee is an agreement where guarantors commit to repay a business loan using their personal assets if the business defaults. It’s crucial to comprehend the implications before signing. The tutorial highlights two types: unlimited and limited personal guarantees. An unlimited personal guarantee grants lenders extensive power, which can be intimidating due to potential asset loss. However, limited personal guarantees can offer more protection to guarantors and their business partners. Understanding these distinctions is essential for making informed business financing decisions.