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Personal Guarantee

A Personal Guarantee Template lets a business owner or individual promise in writing to personally repay a debt if the business cannot. Use this free, ready-to-edit template to protect lenders and give clear terms to the guarantor. Simply fill in the blanks, download, and get it signed in minutes.

What Is a Personal Guarantee and Why Do You Need One?

A Personal Guarantee is a written promise where a person agrees to pay back a debt or meet a business obligation using their own money or assets if the business fails to do so. It is often used when a small business or new company applies for a loan, lease, or credit, and the lender wants extra assurance since the business itself may not have enough credit history or assets. By signing, the guarantor accepts personal responsibility, which gives lenders and landlords more confidence to approve the deal.

Why Use a Ready-Made Template Instead of Writing One Yourself

Writing a personal guarantee from scratch can be risky, since it needs to clearly state the amount owed, what triggers the guarantee, and how long it lasts, or it may not hold up if the debt goes unpaid. A ready-made Personal Guarantee Template already includes the key sections, such as guarantor and creditor details, the underlying debt or agreement, the scope of the guarantee, and signature lines. You only need to add your specific details. This saves time, reduces legal risk, and gives both sides a clear, professional document.

Who Should Use This Personal Guarantee Template

This template is useful for small business owners applying for a business loan, startup founders seeking a line of credit, landlords requiring a guarantee for a commercial lease, and lenders or suppliers who want extra protection before extending credit to a new company. It is also helpful for family members or business partners who agree to back a loan for someone starting or growing a business.

How to Fill Out and Use This Personal Guarantee Correctly

Start by adding the full name and contact details of the guarantor, along with the name of the business and the lender or creditor. Next, describe the underlying agreement, such as a loan, lease, or line of credit, including the amount owed. State clearly whether the guarantee is limited to a set amount or unlimited, and whether it covers the full debt or just part of it. Add a section explaining what happens if the business misses a payment, and how long the guarantee stays in effect. Finally, the guarantor should read the document carefully, sign, and date it, since this is a serious personal commitment that can affect their own finances.


How to Use Agreed Templates

Start With the Template

Open the Product Agreement Template in your Agreed workspace and begin with a ready-to-use agreement structure.

Customize Agreement Details

Add or edit product details, responsibilities, pricing, deliverables, timelines, and other terms to match your agreement needs.

Review, Sign & Manage

Send the agreement for review and approval, collect signatures, and manage the completed agreement securely in Agreed.

Frequently Asked Questions.

Everything you need to know about Agreed. Can't find what you're looking for?

A limited guarantee caps how much the guarantor has to pay, such as a set dollar amount, while an unlimited guarantee makes the guarantor responsible for the full debt with no cap.

Yes, if the business defaults and the guarantor is required to pay, missed or late payments tied to the guarantee can appear on the guarantor's personal credit report.

It depends on the agreement. Some guarantees can be released after certain conditions are met, such as the business building strong credit, but many stay in effect until the debt is fully paid.

No, signing a personal guarantee overrides the usual protection a business structure like an LLC provides for that specific debt, making the owner personally responsible for it.

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