A personal guarantee is often required to obtain a loan for your business or commercial project. But don’t make the mistake of viewing this step as a simple administrative detail – signing a guarantee is a big decision, one that comes with significant financial, managerial and personal considerations.
To identify some issues you may want to consider, we surveyed business owners like you. Here’s what they think about personal guarantees.
- 67% of business owners believe personal guarantees are a normal way of conducting business
- 75% of business owners have calculated the personal financial cost if their personal guarantee was called by a lender
- 65% of business owners know someone who has lost personal assets as a result of personal guarantee being called by a lender
- 48% of business owners indicated that their spouse and/or family worry more about the personal guarantee than they do
- 43% of business owners state that having a personal guarantee causes them worry
- 32% of business owners said having a personal guarantee affects their family
- 26% of business owners said having a personal guarantee negatively affects their business relationships
*Source: Socratic Technologies Personal Guarantee (PG) Insurance Study