UNDERSTANDING PERSONAL GUARANTEE
Business Loan and Credit Card Liability
A personal guarantee is a promise to pay back all charges on a business credit card, loan or line of credit. Singing a personal guarantee agreement makes an individual responsible in their personally responsible for business debt. The personal guarantee is a level of protection to the lender and serves as surety that the debt will be paid.
When a business applies for any sort of loan, credit card or line of credit, they allow lenders to aggressively assess the creditworthiness of the business. If a business is very well established and has an attractive record of profits and growth, they are more likely to receive a loan. On the other hand, if the status of the business’s finance indicates quite the opposite, the lender is at liberty to can decline a loan. However, if the business owner has strong credit, a personal guarantee can be agreed upon. When our attorneys review documentation for a merchant cash advance lawsuit, the contract typically includes a provision of personal liability if a default occurs.
A personal guarantee is beneficial to a lender. If a business cannot repay debt, liquidate or if assets do not cover debt, the lender will recover from the guarantor. As a guarantor, this can have an adverse effect personal, consumer credit reports and lawsuits.
At ZocLaw.com, our business debt relief lawyers are aggressive in defending businesses against lenders. Our lawyers will work with you to provide strong defenses, counterclaims and make sure there are no default judgments. When necessary, our negotiators will work toward settling the personal guaranteed business debt. Schedule your free initial consultation with one of our merchant cash advance debt relief attorneys today. Let’s discuss your options.