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Underline Guaranty Agreement Template

Underline Guaranty Agreement Template

Aug 6th, 2022

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How to Underline Guaranty Agreement Template

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A personal guarantee often arises when a business seeks a loan but lacks sufficient collateral to assure the lender of recovery in case of default. The lender may request that the business owner or a willing family member act as a personal guarantor, signing to guarantee the loan. This means that if the business cannot repay the loan and defaults, the lender can pursue the guarantor for repayment. Potential guarantors should carefully consider the implications of signing, as it can lead to personal financial liability. However, in some cases, providing a personal guarantee may be the only way for the business to secure the necessary funds.

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