I was on creditboards.com and im watching all of these people speak on PG, I just found out what that means, which is personal guarantee, so what does a personal guarantee mean when these people are referring to getting a line of credit for your business without a personal guarantee?
2006-09-21 13:10:16 · 8 answers · asked by Anonymous in Business & Finance ➔ Credit
It means that even if your business closes or goes chapter 11 as many do you are personally liable for the debt. In other words if your business doesn't pay they will go for a judgement to lein your personal assests. new business owners always have to sign these it's the norm once your business is established and has excellent credit sometimes you can get away without signing. Like that will ever happen, Good luck, Sign your life away. The rest of us have we've been saving your seat!
2006-09-21 14:27:27 · answer #1 · answered by Jack 5 · 0⤊ 0⤋
Most entrepreneurs shudder when faced with signing a personal guarantee for a business credit card for the first time. I've never really understood how banks can market a product as a "business line of credit" when it's really a personal line of credit. However, since the vast majority of businesses in the country are sole proprietorships, the difference between personal credit and business credit is murky from a bank's perspective. Unless your business is incorporated, you're the de facto guarantor of all business debts. So if your business has a slow sales quarter and you fall behind on your credit-card payments, your personal credit rating and your personal ability to borrow are at risk.
2006-09-21 13:18:22 · answer #2 · answered by DanE 7 · 0⤊ 0⤋
Take a look at a book called, "Evil Money Evil Credit". Is has additional information which should be able to help ya out. There is a blog called, "How To Get Good Credit Gab" at
www. HowToGetGoodCredit.blogspot. com
"BigBoss" and the response from her dad is correct!
PG's are often used by merchant svcs corporations such as Card Service International. IF you fail to pay the fees and become late...it WILL show up on your credit report. Even if you have a "S" corporation...it WILL show up on your personal credit report!
CSI is not the easiest company to deal with in resolving disputes.
Been there...done that!
2006-09-21 15:23:41 · answer #3 · answered by paeradio 2 · 0⤊ 0⤋
That means that if the business doesn't pay the loan back, than the owner signes a personal guarantee that he/she will pay the loan
2006-09-21 13:15:47 · answer #4 · answered by bigbossmaya 1 · 0⤊ 0⤋
a real enterprise credit card is a line of credit it incredibly is taken interior the call of the enterprise, below the enterprise' credit. activity, whether sturdy or undesirable, is contemplated on your enterprise' credit record via D&B and different financial establishments, and the criminal accountability for any expenses incurred and expenses owed is with the enterprise. whether, some agencies available grant "enterprise" credit enjoying cards which they require someone assure for. those establishments will regularly ask for a private assure, and could purely approximately constantly ask for a social protection selection from the guy making use of for the cardboard. if it incredibly is the case, the credit card isn't a enterprise credit card, yet is purely a private credit card it incredibly is used for the enterprise. The enterprise isn't responsible for expenses and expenses - you're. while making use of for a credit card to your enterprise, pay attention for aspects soliciting to your SSN (and not your TaxID or EIN) and be careful of any credit card that asks for a private assure. by making use of ensuring that your credit card is interior the call of your enterprise, you could help to construct your enterprise' credit, on an identical time as warding off bobbing up issues inclusive of your guy or woman. Many agencies grant a catalogue of credit enjoying cards that are issued below the enterprise call purely. those lists regularly run $3 hundred-$900, finding on the same old of the help inquiring. i'd propose beginning your seek on line with the help of google or yahoo. seek for "stable enterprise credit" (purely like that for the period of costs) to discover centers that sell the help. sturdy success, Ilya Bodner Small enterprise proprietor preliminary Underwriting team
2016-10-01 05:42:12 · answer #5 · answered by ? 4 · 0⤊ 0⤋
a personal guaramtee is worth about as much as the paper its written on and no more. It basically means the person is telling you they will personally repay the money if the company goes bankrupt.
2006-09-21 13:15:42 · answer #6 · answered by roy40372 6 · 0⤊ 0⤋
Wow! Thanks! exactly what I was looking for. I tried looking for the answers on other websites but I couldn't find them.
2016-08-23 07:18:45 · answer #7 · answered by Anonymous · 0⤊ 0⤋
This is puzzling to me too
2016-08-08 15:35:53 · answer #8 · answered by ? 3 · 0⤊ 0⤋