Guarantee or Guaranty

Debt Term

In the context of debt, a guarantee is a legal promise made by an individual or an organization to repay a debt if the original recipient of the debt (the borrower) does not pay. See Limited Guarantee, Unlimited Guarantee, Personal Guarantee, and SBA for more about specific types of guarantees. Usage: “I wish I could get a bank loan for my business without having to give them a personal guarantee.”

Don Gooding

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