Corporate Guaranty
A guarantee backing a loan that's provided by a business entity (such as a parent company or affiliate) rather than an individual owner.
A corporate guaranty shifts the guarantee obligation to another business entity instead of, or alongside, a personal guarantee from an individual owner, which can matter for owners trying to limit personal liability exposure on a loan.
Lenders evaluate the guarantor entity’s own financial strength when a corporate guaranty is offered, similar to how they’d evaluate an individual guarantor’s personal finances.
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