What is personal guarantee (pg)?
Personal Guarantee (PG): The owner's promise to repay if the business can't.
How it works
Nearly every non-bank facility under $5M requires a validity or full PG from majority owners. Non-recourse factoring on the credit side does not remove the fraud/validity guarantee.
Where you will run into it
Personal Guarantee (PG) comes up most often in sba & term loans conversations. See how sba & term loans works, including real cost ranges and timelines.
Related terms
Personal Guarantee (PG) questions
The owner's promise to repay if the business can't.
Nearly every non-bank facility under $5M requires a validity or full PG from majority owners. Non-recourse factoring on the credit side does not remove the fraud/validity guarantee.
Funding Requirements Checklist for US manufacturers
See exactly what underwriters actually look at — for factoring, PO financing, equipment, working capital, ABL, and SBA — before you fill out a single application.
- What documents you need for each program
- Typical time-to-fund by program
- Common disqualifiers worth knowing up front
- How Manufactor Finance is compensated — $0 fees to you
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