PartnersLenders
BUSINESS FINANCING GLOSSARY

Personal Guarantee

A promise that you’ll repay the business debt personally if the company can’t. Standard on most small-business loans, secured or not.

Go deeperPersonal guarantees ▸

Related terms

Default→Failing to meet the terms of a loan — usually missed payments, but also broken covenants. It can accelerate the full balance and trigger collateral seizure.LLC (Limited Liability Company)→A structure that shields owners’ personal assets while passing profits through to their personal taxes — the most common small-business entity.Unsecured Loan→Financing not backed by specific collateral, approved on cash flow and credit. Faster but usually higher-rate, and still typically requires a personal guarantee.

← All 138 glossary terms