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

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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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