WHY DO LENDERS AND VENDORS WANT
PERSONAL GUARANTEES (PGs)?
Business owners are often asked to sign personal guarantees when they borrow or get terms from vendors for their business. It’s frustrating, but try not to take it (ahem) personally.
Lenders &
vendors
Young businesses (< 2-5 years) BRAND NEW
Businesses with weak credit scores (50 or less) 100
35
require PGs from:
Why PGs are
required Businesses that provide PGs are more likely to pay the bills
It shows you have “skin in the game”
http://bit.ly/1paEbhG
It protects your lender or creditor if you default
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Here’s what you need to know
2 WHY DO LENDERS AND VENDORS WANT
PERSONAL GUARANTEES (PGs)?
A personal guarantee means that you are personally responsible for the debt if your business does not pay it.
You should feel confident that your business can financially handle the debt.
What you can do
PLAN B
1
Get a free account with Nav.com
2
Build
If you donâ&#x20AC;&#x2122;t, then it may be a sign you should look for other opportunities to grow your business.
strong business credit scores.
Follow the steps outlined in the Business Launcher tool
Nav is the ONLY site for personal and business credit score access. Check your business credit profile for free.
http://bit.ly/1paEbhG
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