What is a Personal Guarantee?

A Personal Guarantee is basically a legal promise by an individual that she will pay the debt back if the borrower does not pay. This acts as additional protection to the lender of the debt. 

One can use a personal guarantee in a credit deal to get the funds secured for a business.  The company is responsible to make payment on the debt. The guarantor is a backup. This guarantee actually provides the creditor with a legal claim to the guarantors personal assets.