Tag: Personal Guaranty

  • Don’t Want to File a Mechanics Lien? Here Are 5 Other Options

    Don’t Want to File a Mechanics Lien? Here Are 5 Other Options

    Although mechanics liens are very powerful, filing a lien may not be the ideal choice in every situation. Here are 5 options besides filing a lien so that construction businesses can get paid what they earned on their projects.

  • Is A Personal Guarantee Enough To Protect Your Construction Company?

    Is A Personal Guarantee Enough To Protect Your Construction Company?

    Personal guarantees are by definition unsecured, which means that they’re not tied to any one asset. Therefore, a creditor can come after any and all of the guarantor’s assets (your home, boat, stamp collection, complete set of Seinfeld DVDs…you get the idea) in order to satisfy the debt. Moreover, the creditor is generally not required…

  • Personal Guarantees In the Construction Industry

    What Is a Personal Guarantee? A personal guarantee is an individual’s legal promise to repay the debts of a business in the event that the business defaults on the debt. The guaranteeing individual is known as the guarantor, and the entity that the business owes the money to is the creditor. Personal guarantees are by definition unsecured,…

  • Credit Application Series: Personal Guarantee

    A quick google search is all anyone needs to see that personal guarantee is a very popular, and feared, topic. Most advice articles say that business persons should not sign personal guarantees. The purpose of this post is not to debate the merits of whether or not one should sign a personal guarantee, but to…

  • Mechanics Lien Rights Are Better Than A Personal Guaranty

    Since mechanics lien laws and credit policies go hand-in-hand, we’ve had the opportunity in the past to write about different credit protection mechanisms like joint check agreements, credit insurance and personal guarantees. Which remedy is the best?  Of course, each situation is different and calls for different credit protections, but we are obviously fans of…