Glossary → Contracts
Contracts

Personal Guarantee

A promise making you personally liable for a debt or lease.

A personal guarantee makes you individually responsible if a business or tenant can’t pay — putting your personal assets at risk, not just the company’s. On commercial leases especially, this is where the real exposure lives. A “good-guy” guarantee can limit liability to the period until you properly vacate.

In practice

Signing a lease “as guarantor” means the landlord can pursue your savings if the business defaults.

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