Business is inherently risky, so people look for ways to protect their interests when entering into new contracts. A common business practice is to ask for a personal guarantee if money is exchanging hands. This could apply in a loan contract, or for the sale of a business. If you make a personal guarantee for someone else (the debtor), then you (the guarantor) are promising the lender/seller (the guaranteed party) that you can personally pay back what the debtor owes, if they cannot. It is a big commitment, and you should think carefully about all of your possible options before making a personal guarantee. This article will explain www.rapidloan.net/installment-loans/direct-lenders-installment-loans/ what a personal guarantee is, and things you should consider when signing one. Read more