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hello im nadia mcleod from rpmr legal kits and we help you cut your legal costs with our online template kits a guarantee is an agreement used to secure a loan lease or business contract if you become a guarantor you take responsibility for debts if the contract is not paid you need to know your rights and responsibilities because there are risks involved to be a guarantor you must be an adult who is about to provide financial security over a debt often this means you have the assets available to pay a debt if the original contract holder cannot a typical example is a parent who owns their home becoming a guarantor to help their child secure their first mortgage another example is a company taking responsibility for its subsidiary debts if it cannot pay a contractor the written agreement to become a guarantor known as a guarantee is binding banks and other lenders often insist a personal guarantor seeks independent legal advice they may ask you to provide a solicitors certificate as