Personal Guarantees 

If the worst happens, personal guarantees can mean the difference between getting paid, and sitting in a meeting of unsecured creditors hoping for 5 cents in the dollar.

Effective personal guarantee documents address a range of issues including what the guarantor will be liable for, what will or will not affect their liability, privacy disclosures to allow you to find out more about the individuals, when the guarantee expires, non competition in the event of liquidation, preferential payments, jurisdiction, joint and several liability,  and a whole lot more.

Make no mistake, personal guarantees are notoriously difficult to get signed, and you would not be the first credit provider to have your credit application returned without a signed guarantee.

Should this happen, it may be appropriate to take other measures such as a reduced credit limit or insist upon C.O.D. You need to ask yourself if nobody else is willing to back this new customer, why should you?

Please feel free to contact us to find out more.