Personal Guarantee
An owner’s promise to stand behind the business’s lease or loan with personal assets if the company defaults.
Last updated September 5, 2026
Landlords and lenders commonly require personal guarantees from the buyer’s principals. A guarantee can be limited or unlimited and may survive assignment unless the landlord or lender releases it. Sellers often remain on the lease guarantee until the landlord agrees to a substitution. Guarantees are a core reason buyers should understand debt service and lease costs before they sign.