Personal Guarantee Template

A Personal Guarantee is a promise by an individual — the guarantor — to be personally responsible for a debt or obligation if the primary party fails to meet it. It records who is giving the guarantee, who the creditor is, exactly what obligation is being guaranteed, and how far the guarantee extends. Lenders and landlords often ask for one when a business is new or a tenant has limited credit, so an individual stands behind the commitment. The guarantor's signature is what makes the promise binding, which is why the scope and limit must be clear before it is signed.

This layout states the parties and the guaranteed obligation first, then defines the scope or limit, and closes with a dated signature block for the guarantor plus an optional witness line. It is a general-purpose layout with the sections most guarantees need — not financial or legal advice. A personal guarantee can put someone's own assets at risk, and enforceability rules vary by jurisdiction, so anyone signing one should read it carefully and have an attorney review it first.

How this document is used

A bank asks a company's owner to personally guarantee a business loan, so the owner is liable if the company cannot pay. A landlord requires a parent to guarantee a young tenant's lease. A supplier extends credit to a small business only if a director signs a guarantee. In each case the creditor gains a second party to pursue, and the guarantor takes on real responsibility — which is exactly why the document spells out the obligation and any cap on the amount.

Set the amounts and schedule before signing

Describe the obligation being guaranteed — a specific loan, lease, or line of credit — and state the scope: whether the guarantee is unlimited or capped at a maximum amount, and how long it lasts. Open the Word (DOCX) file to adjust the wording, add a limit, or set an expiry. Use the fillable PDF when the terms are settled and you just need to sign. Keep the guarantor and witness signature lines intact so the guarantee is complete.

Common mistakes to avoid

Do not leave the guaranteed obligation vague — name the exact debt, lease, or agreement it covers. Do not overlook the scope: an unlimited guarantee is very different from one capped at a set figure, so state which it is. Avoid signing without understanding that your personal assets may be at stake. And make sure the guarantor signs and dates the document; a witness line adds proof for a significant obligation.

Example scenario

A founder's new company applies for a $40,000 equipment loan. The lender requires a personal guarantee capped at the loan amount and lasting until the loan is repaid. The founder reads the scope, confirms the cap, signs and dates the guarantee, and a colleague signs as witness. If the company later cannot pay, the lender can pursue the founder up to the agreed limit — but no further, because the cap was written in.

Choosing PDF or Word

This page provides a printable fillable PDF and an editable Word (DOCX) file. Use the Word file when you need to adjust the obligation, add a limit, or set an expiry before printing, and the PDF when the terms are settled and you just need to fill and sign. Both include a dated guarantor signature block with an optional witness line so the guarantee is ready to execute.