Personal guarantee
A promise by a business owner to be personally responsible for a lease or loan if the business cannot pay. Landlords and lenders often require one from small or newer businesses.
Also called: PG, personal guaranty, guaranty, good guy guarantee
Related terms
A contract between a landlord and tenant that sets the rent, term, deposit and rules for using a property.
The fixed rent in a commercial lease before any added charges like CAM, taxes or percentage rent. It is usually quoted per square foot per year and often rises by set amounts over the term.
When one side fails to meet its obligations under a contract or loan. In a purchase, the contract spells out remedies, which often include the seller keeping the earnest money.
A lease where a current tenant rents all or part of its space to another party for some or all of the remaining term. The original tenant usually stays liable, and landlord consent is typically required.
Property used for business or to produce income, such as offices, retail, industrial buildings and larger apartment complexes. It is usually valued on its income and financed with commercial loans.