Baker Law Firm

My lender is asking me to sign a personal guarantee. What do I need to know?

If you are starting a business, it is not unusual to require a loan to help get your business started. If that is the case, you may be asked by whoever you are getting the loan from to sign a personal guarantee.

What this means is that when you have to repay the lender for the money you were loaned, if the business itself is unable to repay the credit, then you yourself, being either an executive or partner within the business, will take on that responsibility personally.

This had become standard practice, however, if you give a personal guarantee in Alberta you will want to be sure that you understand the risks.

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My lender is asking me to sign a personal guarantee. What do I need to know? If you are starting a business, it is not unusual to require a loan to help get your business started. If that is the case, you may be asked by whoever you are getting the loan from to sign a personal guarantee. What this means is that when you have to repay the lender for the money you were loan