Finance
Personal guarantee
A personal guarantee is a commitment by a company's owner to repay a business debt personally if the company cannot. Most early business credit cards and loans require one, which means the debt reaches the owner's personal assets despite the company's limited liability.
In plain terms: A promise that you will pay personally if the company cannot.
Why it matters
The point at which limited liability stops protecting you, by your own signature. Not automatically wrong — it is often the only way a young company borrows — but it should be a knowing decision rather than a term nobody read.
Read the full guideBusiness credit and funding