Generally, a Personal Guarantee is where a third party guarantees the financial obligations of a person under a contract. Also known as a personal guaranty.
In lending, a Personal Guarantee is a guarantee in which an individual agrees to be responsible for the financial obligations of a debtor or borrower to a lender, in the event that the debtor or borrower fails to pay an amount owing under the loan agreement.
In leasing, a Personal Guarantee is where a third party guarantees the payment of rent by the tenant to the landlord. If the tenant fails to pay the rent, the landlord can go after the guarantor for any amounts owing under the lease.
