Providing a guarantee can be a crucial step in various situations, such as when you’re helping a friend or family member with a loan, getting business finance or leasing equipment. However, before committing to providing a guarantee, you need to understand the possible legal implications and seek professional legal advice.
As a guarantor, you are legally responsible for fulfilling the obligations of the borrower if they fail to do so.
Therefore, it’s vital to understand your rights, responsibilities, and legal obligations before making any commitments or signing any documents.
Seeking legal advice can help you understand the possible risks, consequences and protect you from any unwanted surprises that may come later. It’s also essential to ensure that you have a full understanding of the guarantee’s terms and conditions, including its duration and scope. Without proper legal advice, you put yourself at risk of facing legal and financial troubles in the future.
You may think the banks would never enforce a guarantor, but unfortunately, it happens quite often.
Many enforcements against guarantors will go unnoticed from the public eye. It is only when the potential personal guarantor challenges the validity of the guarantee do we get to know the details through Court proceedings.
Often, lenders will require that a personal guarantor obtain independent legal advice on those risks, and provide a certificate that a solicitor has provided it to you. We can assist in providing the legal advice needed and providing a legal certificate for you.
