Why a Personal Guarantee?
A staggering number of businesses do not survive their first five years of operation. Thus, it should be a rigid credit policy that a Personal Guarantee is required of any business in operation less than five years. Once again, there are always exceptions to any rule, tempered by good, sound judgment. But for the vast majority of credit extensions, this rule should be followed. Again, it is an added protection for you, but understand that the Personal Guarantee is only as good as the financial worthiness of the guarantor.
