Guarantor
Guarantor is an individual or entity that agrees to be responsible for another`s debt or performance under a contract, if the original party fails to meet their obligations, often needed by startups for leases or loans
Benefits
Having a guarantor can help a startup get loans or leases it wouldn`t get on its own. It`s a boost for growth.
Frequently Asked Questions
What it means to be a guarantor?
Being a guarantor means you promise to pay someone`s debt if they can`t. It`s a big responsibility.
What is guarantor of loan responsibility?
A guarantor for a loan promises to cover the payments if the original borrower fails to pay.
Can a guarantor terminate a guarantee?
Yes, but it`s not simple. Usually, all parties involved must agree to end a guarantor`s responsibility.
Key Takeaway
Guarantors play a key role in helping startups. They provide a safety net for lenders and landlords.