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A personal guarantee (or PG) is something a lender or creditor may require when you take out a loan or a credit card. It holds you, the business owner, personally responsible for the debt in the event your business cannot pay it back. It’s similar to how a lease may require parents, for example, to be the guarantors if a student were to sign. However in this case, you are the guarantor for your business. Many business owners don’t like PG’s, which is understandable. However, in the early days of
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