What does it mean to be a guarantor?
Acting as a guarantor means that you are committing to repay someone else’s debt if they are unable to meet the repayments. You could act as guarantor with respect to the obligations of a family member, business partner or a company where you are a director.
Acting as a guarantor involves significant personal risk as this means that your personal assets (e.g. home) could be used to recover the debt if the guarantee is called upon.
What You Get
Do I need Personal Guarantee Advice?
Banks, financial institutions and other third parties frequently require you to obtain independent legal advice in relation to personal guarantees before they will approve a loan to you.
It is often a condition of the loan that you need to provide a signed Solicitor’s Certificate of Independent Legal Advice before they will finalise the loan and release the funds to you.
Frequently Asked Questions
Personal Guarantee Advice is where a lawyer provides independent legal advice to you about a personal guarantee and your obligations under that guarantee. There are a number of steps involved.
First, the lawyer will need to review the guarantee documents as well as any loan documents that go with it. Next, you will need to provide 100 points of ID to confirm that the person named in the documents is you.
After that, you will have a meeting with the lawyer to discuss the personal guarantee and the risks involved in providing the guarantee. The final step is to sign the Solicitor’s Certificate of Independent Legal Advice, which you then need to return to the lender to prove that you have obtained legal advice.
Every situation is different, which is why you need expert advice from a commercial lawyer. We’re small business specialists, so you know you’re in safe hands with us.
We’ll consider your unique situation and let you know if we think this is right for your business.
Our head office is at Inspire Cowork – a coworking space in Sydney – but we also support flexible work for our team. Our lawyers can work from anywhere.
We use technology to come to you, wherever you’re located around Australia. Many of our clients work from home or at coworking spaces, just like us.
We communicate with our clients via phone, email and Zoom – whatever works best for you. There’s no need to meet face to face, but if you’re ever in the area you’re welcome to drop in!