A personal guarantee (PG) is a promise that you, as the business owner, will be personally responsible for a business obligation if the business cannot meet it. It links the debt to your personal assets, not just the company's.
Where it shows up
Personal guarantees are common in bank loans, lines of credit, equipment financing, and many business funding agreements. In a merchant cash advance, the agreement is the purchase of future receivables rather than a loan, but MCA contracts often include a performance guarantee — you are not guaranteeing repayment of a loan, but you are promising not to interfere with remittance or misrepresent the business.
What to watch for
Read whether a guarantee is limited or unlimited, and whether it is joint (shared with partners) or several (each owner fully liable). Always understand what specifically triggers it before you sign.