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$5000 personal loans no credit check

What Is a Personal Guarantee on a Business Loan and Why We Don’t Require One

What Is a Personal Guarantee on a Business Loan and Why We Don’t Require One

Getting a loan or line of credit can be a great way to grow your business. But these financing tools often come with requirements that can put an entrepreneur in a tight spot. The most prominent of these requirements is the personal guarantee, which most banks insist on when giving out business loans.

At Lighter Capital, our approach to lending is geared to be as entrepreneur-friendly as possible. We like to reduce borrowers’ risk and maintain their control and ownership of their company — and the rest of their assets. That’s why we never require personal guarantees from our borrowers, whether for revenue-based financing, term loans, or lines of credit.

Our stance on personal guarantees is only one of the many reasons entrepreneurs tend to find our funding options more appealing than traditional business loans. Our side by side product comparison displays each of their unique funding structures, providing a better understanding of how we differentiate from a traditional bank and helping you determine which option is best for your company.

What is a personal guarantee on a business loan?

A personal guarantee is an agreement obligating the borrower to pay back their business loan personally if the business cannot do so. Almost all lenders of business loans require personal guarantees, so most business owners who take out out a loan will have to sign the agreement and most likely aren’t even aware it may not always be necessary.

As part of the personal guarantee agreement, a lender can take possession of many of a borrower’s personal assets if the borrower fails to pay back their loan. The lender can collect money from your personal bank account, take over other assets, or garnish wages in order to collect payment on the loan.

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$5000 personal loans no credit check

Thousands of people around the country have achieved homeownership by means of a residential mortgage loan classified as “subprime”

Thousands of people around the country have achieved homeownership by means of a residential mortgage loan classified as “subprime”

Subprime lending has been an engine of growth in home sales and, for the most part, subprime borrowers have met their mortgage loan payment obligations, and enjoyed their new homes.

Some subprime loans, however, prove impossible for borrowers to honor over time. Some subprime lenders, and some loan officers in the course of marketing subprime loans, exploited borrowers – who may now face delinquencies in payment or foreclosure.

If you feel you have been exploited by a lender, contact the New Jersey Department of Banking and Insurance.

“Prime” and “Subprime” refers to the interest rate and terms of the loan based on the borrower’s credit history. Borrowers with the highest credit scores and cleanest payment histories present limited risk to the lender and are usually offered lower interest rates and placed in the “prime” market.

Borrowers with lower credit scores as a result of events such as late payments, court judgments and bankruptcies present a higher risk to the lender; and, therefore, are offered higher interest rates and are placed in the “subprime” market.

Borrowers may not be aware that they are placed in the “subprime” market. If you have one or more of the credit characteristics listed below, your loan may have “subprime” terms.