Template · Contract
Personal guarantee agreement template — for business invoices and contracts
Use this template to require a business owner to personally back their company's payment obligation — commonly used when extending credit to a new LLC, small corporation, or business with unknown credit history.
Use it for
- New B2B clients with no established payment history
- Clients who are incorporated entities (LLC, corp) with limited trackable assets
- Project values over $2,000 where credit risk is meaningful
- Clients where the business owner is the primary decision-maker
Do not use for
- Consumer transactions — personal guarantees are standard only in B2B
- Publicly traded companies or large corporations with strong credit
- Existing clients with a proven payment history
Variables to fill in
- {{CREDITOR_BUSINESS_NAME}}
- Your business name — the party being paid.
- {{DEBTOR_BUSINESS_NAME}}
- The client's business name.
- {{GUARANTOR_FULL_NAME}}
- The individual (typically the business owner or officer) providing the guarantee.
- {{GUARANTOR_ADDRESS}}
- The guarantor's personal address.
- {{UNDERLYING_AGREEMENT}}
- Brief description of the underlying contract or invoice (e.g., 'Service Agreement dated [date]' or 'Invoice #4412 for [services]').
- {{MAX_GUARANTEED_AMOUNT}}
- Optional cap on the guarantee amount. Leave blank or write 'unlimited' for an uncapped guarantee.
- {{STATE}}
- Governing state law — should match your service contract.
- {{DATE}}
- Date the guarantee is signed.
The template
Select all and copy. Replace the {{double-brace}} placeholders with your details.
PERSONAL GUARANTEE AGREEMENT
Date: {{DATE}}
Creditor: {{CREDITOR_BUSINESS_NAME}}
Debtor (Business): {{DEBTOR_BUSINESS_NAME}}
Guarantor (Individual): {{GUARANTOR_FULL_NAME}}
Guarantor Address: {{GUARANTOR_ADDRESS}}
1. GUARANTEE
In consideration of {{CREDITOR_BUSINESS_NAME}} entering into the {{UNDERLYING_AGREEMENT}} with {{DEBTOR_BUSINESS_NAME}}, the undersigned Guarantor unconditionally and irrevocably guarantees the full and prompt payment of all amounts owed by {{DEBTOR_BUSINESS_NAME}} to {{CREDITOR_BUSINESS_NAME}} under said agreement, up to a maximum of ${{MAX_GUARANTEED_AMOUNT}}, including any accrued late fees, interest, and reasonable collection costs.
2. NATURE OF GUARANTEE
This is an unconditional guarantee. Creditor may pursue Guarantor for payment without first exhausting remedies against {{DEBTOR_BUSINESS_NAME}}. Guarantor waives any right to require Creditor to proceed against the business entity first.
3. CONTINUING OBLIGATION
This guarantee remains in full force until all amounts owed under the underlying agreement are paid in full. No modification of the underlying agreement, extension of time, or release of any other guarantor shall affect this guarantee.
4. WAIVER OF DEFENSES
Guarantor waives presentment, demand, protest, and notice of dishonor or default. Guarantor further waives any defense arising from Creditor's failure to notify Guarantor of the debtor's default.
5. GOVERNING LAW
This agreement is governed by the laws of the State of {{STATE}}.
6. ACKNOWLEDGMENT
Guarantor acknowledges that they have read and understand this guarantee, have had the opportunity to consult with an attorney, and are signing voluntarily.
GUARANTOR SIGNATURE:
Signature: ___________________________
Printed Name: {{GUARANTOR_FULL_NAME}}
Date: ___________________________
[STATE-SPECIFIC NOTE: Some states impose restrictions on personal guarantees for consumer transactions or require specific language for enforceability in commercial contexts. Have an attorney in {{STATE}} review this guarantee before use.]
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This template is general-purpose educational content, not legal advice. State law varies and attorney review is recommended before use. Syntharra is not your attorney.Personal guarantee signed — now automate the follow-up. Syntharra calls before it ever comes to that.
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