Newbie Business Note ?

A simple question, but I need it clarified for me. What exactly is a personal guarantee on a
Businee Note? thanx, herbster
Thanx for the good answers, let me add another question. Business "A"credit, "B"credit etc.
whats the difference? can it be related to a credit score? thanx again herbster.


A personal guarantee just means that you are personally guaranteeing that the mortgage will be paid. If you don’t pay and they foreclose, they can also come after your personal assets for any deficit after the foreclosure sale.


These are also known as recourse loans. Sometimes you’ll see them called recourse or nonrecourse. The latter means that the business only is liable for any losses incurred by the property.