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Guaranty by Corporation Complex Form

Guaranty by Corporation Complex Form

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"What is a personal guarantee and is it a good idea?" I get asked this question a lot by clients that want to know what exactly is a personal guarantee? And usually we'll see that in business contexts where a business owner goes in to lease a property or get a small business loan let's say, and they say, "Oh, you just have to sign this personal guarantee." And most people don't even really understand exactly what that means, but it's usually a lot of times required by a landlord, by the tenant. Let's say the tenant is your business and you go to rent an office and the landlord says, "Okay, you're a corporation and a California corporation is how you have have your business set up." Well, they're going to say "You need to sign a personal guarantee because your corporation was set up only two years ago and doesn't really have a lot of assets or a lot of operating

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