CloudsCreditRepair™ FAQ

What is a personal guarantee?

A personal guarantee is a contractual commitment by a business owner to be personally responsible for a business debt if the business cannot repay it.

Explanation

Most small business loans and business credit cards require a personal guarantee, especially when the business is under 2 years old or has limited business credit.

Strong business credit and longer operating history can sometimes unlock financing with limited or no personal guarantee.

Examples
  • Common on SBA loans, lines of credit, and most business credit cards
  • Limited PG = capped exposure (e.g. 20% of loan)
  • Full PG = unlimited personal liability
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