"Personal Guarantee Template"

What Is a Personal Guarantee?

A Personal Guarantee is a document that expresses a written promise by a guarantor to take responsibility for a debtor if they fail to pay their debt to a lender. The purpose of this guarantee is to ensure the lender that the loan will be paid back. Even if the debtor won't be able to pay it back, the guarantor is taking responsibility for their loan.

Alternate Name:

  • Guarantee Document.

A Personal Guarantee is often used in situations when a debtor does not have a good credit history, or its length is not sufficient. The guarantee can be accompanied by other documents, such as Personal Guarantee insurance. A guarantee similar to this is known as a Corporate Guarantee. This kind of guarantee deals with an entity instead of an individual.

Personal Guarantee insurance provides insurance coverage for those guarantors, who have signed the Guarantee. The circumstances depend on the terms and conditions of the insurance, however, the insurance is designed to cover part of the liability upon the signed guarantee, in case a guarantor won't be able to pay back the loan with the debtor and would not want to lose any personal assets.

You can download a Personal Guarantee template through the link below.

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How to Write a Personal Guarantee?

Writing a Guarantee is a straightforward process since the document is flexible and can be changed depending on the situation. A common Personal Guarantee form consists of several parts which include the following:

  1. Information About the Parties. In the first part of the document, individuals using this guarantee must enter the names and addresses of all three sides that are entering the deal.
  2. Information About the Loan. Here the individual using this guarantee should report the data about the loan: the amount of money that was loaned, when it is due, and the date and number of the contract.
  3. The Subject of the Guarantee. This part of the form is supposed to be used to express the subject of the document, where a guarantor states their intention to share responsibility with the loan borrower.
  4. Terms and Conditions of the Guarantee. If there are any limitations to the guarantor's responsibility, for example, if they provide security to a part of the borrower's loan, it should be stated in this part of the guarantee.
  5. Contact Information. For the purpose of timely correspondence, the parties involved in the deal should provide their contact information, such as mailing address, fax, telephone number, and email.
  6. Signatures. Parties must express their consent with everything stated in the document by signing it and stating their names. The guarantee must be dated as well.
  7. Witness. A document must be signed by a witness, for example, a public notary.

How to Get Out of a Personal Guarantee on a Commercial Lease?

Getting out of a Personal Guarantee lease is a complicated process, it actually might be easier to avoid it entirely. To do so, the individual can offer their potential landlord to pay a bigger deposit or transfer a prepayment that will cover the first six months or a year's rent.

If the guarantee is unavoidable, the individual should make some steps before signing it. First, they should review all the terms and conditions included in the document. Then they should try to negotiate the expiration period of the document and set it to one year or shorter. Lastly, they can always try to show the landlord a document that will prove that the business has a consistent profit. That can help to persuade the landlord to sign an amendment for the guarantee and decrease its period or the amount of liability.

How Long Is a Personal Guarantee Enforceable?

To understand how long a Guarantee is enforceable, an individual should first carefully review it, since it might include some terms that influence the duration of the document. For example, it can contain a clause that sets the time period of one year for the document to be enforceable. Seeking legal advice, in this case, can be a good idea as well. Most of the guarantees cover the loan period, so if the debtor is supposed to pay back to the lender within five years, then the document is likely to be enforceable for five years.


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Personal Guarantee
This ​ P ersonal Guarantee (hereinafter referred to as the "Guarantee") dated
____________________ between:
____________________ of ________________________ (hereinafter referred
to as the "Guarantor") ​ O N THE FIRST PART
____________________ of ________________________ (hereinafter referred
to as the "Lender") ​ O N THE SECOND PART
____________________ of ________________________ (hereinafter referred
to as the "Debtor") ​ O N THE THIRD PART
IN CONSIDERATION OF good and valuable consideration, and any future credit
that the Lender may extend from time to time to the Debtor, the receipt and
sufficiency of which is hereby acknowledged, the Guarantor guaranteed the prompt,
full and complete performance of any and all existing duties of the Debtor to the
Lender and the payment of any and all indebtedness due to the Lender by the Debtor,
up to a limit of $____________________, under the following terms and conditions:
1. Subject to the above limit, the Guarantor guaranteed that the Debtor will promptly
pay the amount of principal and interest of the debt under the Agreement (hereinafter
referred to as the "Debt") as and when the same will in any manner be or become due,
either according to the terms and conditions provided by the Agreement or upon
acceleration of the payment under the Agreement by reason of a default.
2. The Guarantor agrees not to pledge, hypothecate, mortgage, sell, or otherwise
transfer any of the Guarantor's assets without the prior written consent of the Lender.
3. To the extent permitted by law, the Guarantor waives all defenses, counterclaims, or
offsets that are legally available to the Guarantor with the respect to the payment of
the Debt ot the Debtor.
4. The Lender is hereby authorized at any time, in its sole discretion and without
notice, to take, change, release, or in any way deal with any security securing the Dbt
without in any way impairing the obligation of the Guarantor.
5. The Lender will be under no obligation to collect or to protect any such security of
the Debt, and its neglect or failure to collect or protect the security or the Debt is
excused. Acceptance of the Guarantee is waived.
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T EMPLATEROLLER.COM
Personal Guarantee
This ​ P ersonal Guarantee (hereinafter referred to as the "Guarantee") dated
____________________ between:
____________________ of ________________________ (hereinafter referred
to as the "Guarantor") ​ O N THE FIRST PART
____________________ of ________________________ (hereinafter referred
to as the "Lender") ​ O N THE SECOND PART
____________________ of ________________________ (hereinafter referred
to as the "Debtor") ​ O N THE THIRD PART
IN CONSIDERATION OF good and valuable consideration, and any future credit
that the Lender may extend from time to time to the Debtor, the receipt and
sufficiency of which is hereby acknowledged, the Guarantor guaranteed the prompt,
full and complete performance of any and all existing duties of the Debtor to the
Lender and the payment of any and all indebtedness due to the Lender by the Debtor,
up to a limit of $____________________, under the following terms and conditions:
1. Subject to the above limit, the Guarantor guaranteed that the Debtor will promptly
pay the amount of principal and interest of the debt under the Agreement (hereinafter
referred to as the "Debt") as and when the same will in any manner be or become due,
either according to the terms and conditions provided by the Agreement or upon
acceleration of the payment under the Agreement by reason of a default.
2. The Guarantor agrees not to pledge, hypothecate, mortgage, sell, or otherwise
transfer any of the Guarantor's assets without the prior written consent of the Lender.
3. To the extent permitted by law, the Guarantor waives all defenses, counterclaims, or
offsets that are legally available to the Guarantor with the respect to the payment of
the Debt ot the Debtor.
4. The Lender is hereby authorized at any time, in its sole discretion and without
notice, to take, change, release, or in any way deal with any security securing the Dbt
without in any way impairing the obligation of the Guarantor.
5. The Lender will be under no obligation to collect or to protect any such security of
the Debt, and its neglect or failure to collect or protect the security or the Debt is
excused. Acceptance of the Guarantee is waived.
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T EMPLATEROLLER.COM
6. The Lender may grant extensions of time and other indulgences and otherwise deal
with the Debtor and with other parties and securities as the Lender may see fit without
in any way limiting or lessening the liability of the Guarantor under this Agreement.
7. Any impairment of the security, which the Lender may from time to time hold as
security for the Debt, will in no way operate to discharge the Guarantor in whole or in
part, it being specifically agreed that the Lender is not required to exercise diligence to
enforce its rights against the Debtor.
8. The Lender may release, surrender, exchange, modify, impair, or extend the periods
of duration or the time for performance or payment of any collateral securing the
obligations of the Debtor to the Lender, and may also settle or compromise any claim
of the Lender against the Debtor or against any other person or corporation whose
obligation is held by the Lender as collateral security for any obligation of the Debtor
or the Lender.
9. This Guarantee is for the use and benefit of the Lender, and will also be for the use
and benefit of any subsequent Lender to whom the Lender may assign this Guarantee.
10. The liability of the Guarantor will continue until payment is made of every
obligation of the Debtor now or later incurred in connection with the Debt and until
payment is made of any loss or damage incurred by the Lender with respect to any
matter covered by this Guarantee.
11. The Guarantor further waives all rights, by statute or otherwise, to require the
Lender to institute suit against the Debtor, and to exercise diligence in enforcing this
Guarantee or any other instrument.
12. Any and all present and future debts and liabilities of the Debtor to the Guarantor
are postponed in favor of and subordinated to the full payment and performance of all
present and future debts and obligations of the Debtor to the Lender. Upon any default
by the Debtor under this Agreement, all present and future indebtedness of the Debtor
to the Guarantor is hereby assigned to the Lender and any monies thereafter received
by the Guarantor form the Debtor has been fully paid and satisfied.
13. The Guarantor represents that at the time of the execution and delivery of this
Guarantee nothing exists to impair the effectiveness of the Guarantee.
14. All of the Lender's rights, powers, and remedies available under this Guarantee
and under any other agreement on force now or anytime later between the Lender and
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the Guarantor will be cumulative and not alternative, and will be in addition to all
rights, powers, and remedies given to the Lender by law or in equity.
15. The Lender may, at its option, proceed in the first instance against the Guarantor
to collect the obligation covered by this Guarantee without first proceeding against
any other person, firm, or corporation and without resorting to any property held by
the Lender as collateral security.
16. This Guarantee is made pursuant to the laws of the ____________________.
State
17. Any notice to be given to the Guarantor may be sent by mail, telephone, email, or
otherwise delivered to the address provided below:
_____________________________________________________________________
The Guarantor, Lender, and Debtor agree to the terms and conditions set forth above
as demonstrated by their signatures as follows:
GUARANTOR
LENDER
DEBTOR
_______________________
_______________________
_______________________
Name
Name
Name
_______________________
_______________________
_______________________
Signed
Signed
Signed
_______________________
_______________________
_______________________
Date
Date
Date
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