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A personal guarantee, also known as a director's guarantee, is an agreement between a limited company director, and a lender. It works whereby the director, pledges to be personally liable for repaying a loan, in the event that the company is unable to service the debt.

Almost anyone can be a guarantor. It's often a parent or spouse (as long as you have separate bank accounts), but sometimes a friend or relative. However, you should only be a guarantor for someone you trust and are willing and able to cover the repayments for.

A guaranty agreement is a contract between two parties where one party agrees to pay a debt or perform a duty in the event that the original party fails to do so. The party who makes the guaranty is called the guarantor. An agreement of this nature is often used in real estate, insurance, or financial transactions.

At law, the giver of a guarantee is called the surety or the "guarantor". The person to whom the guarantee is given is the creditor or the "obligee"; while the person whose payment or performance is secured thereby is termed "the obligor", "the principal debtor", or simply "the principal".

Indemnities, such as a guaranty agreement or bond, may be used to 1) supplement both working capital and net worth; 2) support a cash only financial statement (lacking fixed assets causes a deficiency with respect to plant and equipment); or 3) provide evidence of financial solvency and security to the entity to be ...

Guaranty is an obsolete form of the word guarantee, it is now mostly used as a noun in financial and legal documents to refer to something that is offered as security that an action will occur.

Guarantees are different. Since I started in the law, and indeed since some 288 years earlier, the 1677 Statute of Frauds has required that a guarantee needs to be signed and in writing. Of course, back in 1677 and indeed until some time after I became a lawyer, we didn't have email.