A personal guarantee is a type of written mutual agreement from a business executive or company owner that ensures mortgage on a lease or loan in the situation the company does not pay. This is unsecured because a personal guarantee is not tied to any specific asset. In the event of non-payment, the lender can go after the guarantor’s assets.
This is also a very common requirement for those businesses with no track record or for those who are still starting their own business. If a new business will not agree to sign a personal guarantee, they will have a very difficult time leasing a copier machine or leasing other equipment. Other than that, they will have a difficult time finding a less expensive leasing company. On the other hand, if you are an existing company with good business financials and solid credit, then most likely, you won’t need to sign a personal guarantee.
● How do you get a personal guarantee?
A personal guarantee requirement varies depending on the leasing company you are applying to. Some don’t check your credit card score, but most require it. A credit card score, most of the time, acts as one of the important requirements in getting a personal guarantee.
• You can access new finance.
• It broadens your alternatives in terms of mortgage equipment.
• You can negotiate the percentage of the loan which would reduce the personal risk to you.
• There won’t be any issues if all goes well.
• You can raise funds when they are needed most.
• If things go wrong and a call is made under the Guarantee, you, along with the other guarantors, will be liable to pay the company’s debt.
• Your personal assets will potentially be on the line and you could lose your home, your bank account will freeze, and your savings will be taken to settle your outstanding debt.
• New bill could execute your company image worthless.
• Worst case scenario, you will be made bankrupt if your assets fail to cover the debt.
● Why should you sign a personal guarantee for equipment or a copier lease?
A copier leasing or leasing itself is an obligatory contract you have with a leasing company that ties you to the mortgages of your copier equipment for as long as you have the machine. Financial institutions and leasing companies offer copier leasing services for those companies and businesses who still lack funds to support most of their office needs. And most of the companies think that leasing is a rather great choice for those who are still on their starting journey.
For instance, like the copier leasing in your location, this leasing company offers a great quality of equipment that you will definitely like. Copier machines or company equipment can be expensive, but the copier leasing services in your location offer enough help for you to make the right investments with the perfect product without getting broke. Other than that, they also guarantee maximum productivity at all times and service all brands for office, enterprise solutions, and small businesses.
Personal guarantees are the most helpful option for newly built businesses. Spending money for business is a risk you need but at least the Personal guarantees can assure you on your purchases. This can help you lease a copier machine or equipment suitable for your company without spending too much. What more is that copier leasing, Copier Repair, IT Services in your location can give you a much comfortable and reasonable leasing price while maximizing the benefits of your guarantee. Leasing companies will also assist you with the machines you purchased and guarantee services for repair or accessory replacements.