GUARANTEE BY INDIVIDUAL(S) FOR APPLICATION TO HANG SENG COMMERCIAL 2025

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  1. Click ‘Get Form’ to open it in the editor.
  2. Begin by filling in the applicant company's name at the top of the form. Ensure that all details are accurate as this will be referenced throughout the document.
  3. In the Personal Declaration section, each guarantor must acknowledge their role and responsibilities. They should tick the appropriate boxes indicating their status as a director, principal shareholder, or principal owner.
  4. Complete the identification section for each guarantor, including type and number of identification documents. This is crucial for verification purposes.
  5. Select whether you are opting for a Limited or Unlimited Guarantee by ticking the corresponding box. Make sure to understand the implications of your choice.
  6. Finally, ensure all signatures are collected from guarantors and witnesses before submitting. Review all entries for accuracy to avoid delays.

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A personal guarantee is a commitment to assume responsibility for a business loan. Typically, it is made by the business owner or a key executive. A borrower who enters a personal guarantee is known as a guarantor. Personal guarantees are legally binding. Many small business lenders require personal guarantees.
Example: I, [Your Name], hereby personally guarantee the repayment of the loan amount of $50,000 borrowed by [Business Name] from [Lender Name]. This guarantee remains in effect until the full loan amount is repaid or until all obligations under the loan agreement are satisfied. Signed, [Date].
This is a generic form of guarantee for use when a company (typically, the corporate parent) is asked to support the obligations of a party (obligor) under a commercial agreement. This Standard Document has integrated notes with important explanations and drafting and negotiating tips.
I see you signed a personal guarantee for the loan and then sold the business. The only way to remove the personal obligation is to refinance that loan. The new business owners would need to personally guarantee the loan.
This can be achieved by demonstrating the businesss financial stability and track record. Providing comprehensive financial statements, evidence of consistent revenue streams, and a solid business plan can help convince the landlord of the reduced risk of forgoing the personal guarantee.

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ing to Zach Reece, a small business owner and former certified public accountant, you can get rid of personal guarantees only if you sell your business and are released from the guarantee or file for bankruptcy.

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