[{"data":1,"prerenderedAt":536},["ShallowReactive",2],{"document-guarantee-of-account-D400":3},{"document":4,"label":26,"preview":11,"thumb":27,"thumb600":28,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":29,"breadcrumb":33,"related":40,"customDescModule":187,"customdescription":6,"mdFm":188,"mdProseHtml":535},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":15,"keywords":25},"June 18, 2022 Contact Name Address Address2 City, State/Province Zip/Postal Code OBJECT: GUARANTEE OF ACCOUNT Dear [Contact name], For value received and in consideration of the credit that you may hereafter extend, the undersigned hereby jointly, severally, and unconditionally guarantee payment when due, at your office in [City, State], of any and all present or future indebtedness owed to you by the applicant named on the reverse hereof, hereinafter called the debtor, and hereby agree punctually to pay such indebtedness if default in payment thereof be made by the debtor, plus attorney fees of [%] of said amounts if placed for collection. ",null,"Guarantee of Account","1",33,"doc","https://templates.business-in-a-box.com/imgs/1000px/guarantee-of-account-D400.png","https://templates.business-in-a-box.com/imgs/250px/400.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#400.xml",{"title":6,"description":6},[16,19,22],{"label":17,"url":18},"Finance & Accounting","/templates/finance-accounting/",{"label":20,"url":21},"Business Loans","/templates/business-loan/",{"label":23,"url":24},"Guaranties & Collateral","/templates/guaranties-collateral/","guarantee account","Guarantee of Account Template","https://templates.business-in-a-box.com/imgs/400px/400.png","https://templates.business-in-a-box.com/imgs/600px/400.png",[30,16,19,22],{"label":31,"url":32},"Templates","/templates/",[34,35,38],{"label":31,"url":32},{"label":36,"url":37},"Legal Agreements","/templates/business-legal-agreements/",{"label":23,"url":39},"/templates/guaranties-and-collateral/",[41,45,49,53,57,61,65,69,73,77,81,85,89,104,123,137,155,170],{"label":42,"url":43,"thumb":44,"extension":10},"Personal Guarantee","/template/personal-guarantee-D405","https://templates.business-in-a-box.com/imgs/250px/405.png",{"label":46,"url":47,"thumb":48,"extension":10},"Money Back Guarantee","/template/money-back-guarantee-D13025","https://templates.business-in-a-box.com/imgs/250px/13025.png",{"label":50,"url":51,"thumb":52,"extension":10},"Warranty and Guarantee Policy","/template/warranty-and-guarantee-policy-D13800","https://templates.business-in-a-box.com/imgs/250px/13800.png",{"label":54,"url":55,"thumb":56,"extension":10},"Guarantee Agreement","/template/guarantee-agreement-D5194","https://templates.business-in-a-box.com/imgs/250px/5194.png",{"label":58,"url":59,"thumb":60,"extension":10},"Authorization to Debit Account","/template/authorization-to-debit-account-D280","https://templates.business-in-a-box.com/imgs/250px/280.png",{"label":62,"url":63,"thumb":64,"extension":10},"Notice of Disputed Account","/template/notice-of-disputed-account-D451","https://templates.business-in-a-box.com/imgs/250px/451.png",{"label":66,"url":67,"thumb":68,"extension":10},"Guarantee and Postponement of Claims","/template/guarantee-and-postponement-of-claims-D883","https://templates.business-in-a-box.com/imgs/250px/883.png",{"label":70,"url":71,"thumb":72,"extension":10},"Authorization to Release Account Information","/template/authorization-to-release-account-information-D281","https://templates.business-in-a-box.com/imgs/250px/281.png",{"label":74,"url":75,"thumb":76,"extension":10},"Request Bank to Close Account","/template/request-bank-to-close-account-D292","https://templates.business-in-a-box.com/imgs/250px/292.png",{"label":78,"url":79,"thumb":80,"extension":10},"Settlement Offer on Disputed Account","/template/settlement-offer-on-disputed-account-D460","https://templates.business-in-a-box.com/imgs/250px/460.png",{"label":82,"url":83,"thumb":84,"extension":10},"Notice to Account Debtor of Assignment","/template/notice-to-account-debtor-of-assignment-D393","https://templates.business-in-a-box.com/imgs/250px/393.png",{"label":86,"url":87,"thumb":88,"extension":10},"Guarantee of Claim Promissory Note","/template/guarantee-of-claim-promissory-note-D884","https://templates.business-in-a-box.com/imgs/250px/884.png",{"description":90,"descriptionCustom":6,"label":91,"pages":8,"size":92,"extension":10,"preview":93,"thumb":94,"svgFrame":95,"seoMetadata":96,"parents":98,"keywords":97,"url":103},"BUSINESS CREDIT APPLICATION Name/Address Last: First: Middle Initial: Title Company Name: Tax I.D. Number Address: City: State/Province: ZIP/Postal Code: Phone: Company Information Type of Business: In Business Since: Legal Form Under Which Business Operates: State/Province/Country: Corporation Partnership Proprietorship Other If Division/Subsidiary, Name of Parent Company: In Business Since: Name of Company Principal Responsible for Business Transactions: Title: Address: City: State/Province: ZIP: Phone: Name of Company Principal Responsible for Business Transactions: Title: Address: City: State/Province: ZIP: Phone: ","Business Credit Application",513,"https://templates.business-in-a-box.com/imgs/1000px/business-credit-application-D247.png","https://templates.business-in-a-box.com/imgs/250px/247.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#247.xml",{"title":97,"description":6},"business credit application",[99,102],{"label":100,"url":101},"Credit & Collection","credit-collection",{"label":100,"url":101},"/template/business-credit-application-D247",{"description":105,"descriptionCustom":6,"label":106,"pages":107,"size":108,"extension":10,"preview":109,"thumb":110,"svgFrame":111,"seoMetadata":112,"parents":113,"keywords":121,"url":122},"PROMISSORY NOTE This Promissory Note (the \"Note\") is made and effective the [DATE], BETWEEN: [LENDER NAME] (the \"Lender\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Borrower\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] TERMS FOR VALUE RECEIVED, the Borrower promises to pay to the order of Lender, at its principal office located at [ADDRESS], or at such other place that is designated in writing by the holder hereof, the principal sum of [AMOUNT], together with all charges and interest herein provided, payable at the rate and in the manner hereinafter set forth: Borrower shall make monthly payments of principal and interest at the rate of [%] per annum based upon an amortization of [NUMBER] months. Monthly payments shall be due on or before the first day of each month with the first payment being due on or before [DATE]. If not sooner paid, all amounts due under this Note, including principal, interest and other charges shall be due and payable in full on or before the first day of [MONTH], [YEAR] (the \"Maturity Date\"). Time is of the essence of the payment obligations hereunder and each monthly payment shall be due and payable on or before the first day of each month. This Note is and will be secured by a certain first priority security interest in all of the tangible and intangible property of the Borrower, to be recorded in all applicable governmental offices. The parties shall execute a separate security agreement, in form and substance acceptable to the Lender in all respects. Borrower agrees to execute any such security agreements presented by the Lender or other documents required by the Lender in order to perfect its security interest in the above described property. Said Security Agreement and any other instruments and documents executed in connection with or given as security for this Note shall hereinafter be referred to collectively as the \"Loan Documents.\" All of the terms, covenants, Conditions, representations and warranties contained in the Loan Documents are hereby made part of this Note to the same extent and with the same force and effect as if fully set forth herein. If all or any portion of any payment due hereunder is not received by the Lender within [NUMBER] calendar days after the date when such payment is due, Borrower shall pay a late charge equal to [%] of such payment, such late charge to be immediately due and payable without demand by Lender. Borrower shall have the right to prepay all (but not a portion) of the indebtedness evidenced by this Note at any time, by paying the Lender an amount equal to the sum of (I) the principal balance then outstanding, (ii) all interest accrued to the date of such prepayment, (iii) all interest calculated through the Maturity Date, and (iv) any late charge or charges then due and owing. If any payment under this Note is not paid in full by the [DAY] of any month during the term hereof or if the entire amount due as represented by this Note is not paid in full on or before the Maturity Date, or should default be made in the performance or observation of any of the terms, covenants, or conditions contained in the Loan Documents, or if any representation or warranty contained in the Loan Documents is breached or is or becomes untrue, this Note shall be in default, and the entire principal amount outstanding hereunder, accrued interest thereon, all late charges, if any, and any and all other charges due hereunder, shall, at Lender's option, immediately become due and payable, without further notice, the giving of such notice being expressly waived by the Borrower","Promissory Note","3",39,"https://templates.business-in-a-box.com/imgs/1000px/promissory-note-D434.png","https://templates.business-in-a-box.com/imgs/250px/434.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#434.xml",{"title":6,"description":6},[114,116,118],{"label":17,"url":115},"finance-accounting",{"label":20,"url":117},"business-loan",{"label":119,"url":120},"Promissory Notes","promisory-note","promissory note","/template/promissory-note-D434",{"description":124,"descriptionCustom":6,"label":125,"pages":126,"size":92,"extension":10,"preview":127,"thumb":128,"svgFrame":129,"seoMetadata":130,"parents":132,"keywords":131,"url":136},"LOAN AGREEMENT This Loan Agreement (\"Agreement\") is made and effective the [DATE], BETWEEN: [LENDER NAME] (the \"Lender\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Borrower\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] Promise to Pay Within [NUMBER] months from today, Borrower promises to pay to Lender the sum of [AMOUNT], and interest and other charges stated below. Responsibility Although this Agreement may be signed below by more than one person, Borrower understands that both parties are individuals responsible for paying back the full amount. Breakdown of Loan Amount of Loan: Other (Describe): Amount Financed: Finance Charge: Total of Payments: Annual Rate: Repayment Borrower will repay the amount of this note in [NUMBER] equal uninterrupted monthly installments of [AMOUNT] each on the [DAY] of each month starting on the [DATE], and ending on [DATE]. Prepayment Borrower has the right to prepay the whole outstanding amount at any time","Loan Agreement","2","https://templates.business-in-a-box.com/imgs/1000px/loan-agreement-D417.png","https://templates.business-in-a-box.com/imgs/250px/417.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#417.xml",{"title":131,"description":6},"loan agreement",[133,134,135],{"label":17,"url":115},{"label":20,"url":117},{"label":20,"url":117},"/template/loan-agreement-D417",{"description":138,"descriptionCustom":6,"label":139,"pages":8,"size":92,"extension":140,"preview":141,"thumb":142,"svgFrame":143,"seoMetadata":144,"parents":146,"keywords":145,"url":154},"Your Company Name Account Statement\r  Your Company Address\r  Your Company City, State, Zip DATE\r  Phone: 123.456.7890\r  Fax: 123.456.7890\r  Email: someone@yourcompany.com\r  Customer Name\r  ATTN: Customer Contact\r  Customer Address\r  Customer City, State, Zip\r  Customer ID:\r  DATE INVOICE # AMOUNT PAYMENT BALANCE\r  CURRENT 1-30 DAYS PAST DUE\r  31-60 DAYS PAST \r DUE\r  61-90 DAYS PAST \r DUE\r  OVER 90 DAYS \r PAST DUE AMOUNT DUE\r  -                        -                        -                        -                        -                        -$                      \r BILL TO\r  DESCRIPTION","Accounts Receivable","xls","https://templates.business-in-a-box.com/imgs/1000px/accounts-receivable-D308.png","https://templates.business-in-a-box.com/imgs/250px/308.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#308.xml",{"title":145,"description":6},"accounts receivable",[147,148,151],{"label":17,"url":115},{"label":149,"url":150},"Business Accounting","business-accounting",{"label":152,"url":153},"Business Spreadsheets","business-spreadsheets","/template/accounts-receivable-D308",{"description":156,"descriptionCustom":6,"label":157,"pages":8,"size":92,"extension":10,"preview":158,"thumb":159,"svgFrame":160,"seoMetadata":161,"parents":163,"keywords":168,"url":169},"[DATE] [CONTACT NAME] [ADDRESS] [ADDRESS 2] [CITY, STATE/PROVINCE] [ZIP/POSTAL CODE] SUBJECT: demand for extension of payment date Dear [Contact name], This will acknowledge our telephone conversation of this date. As was stated in our letter dated [Date], we should be receiving our financing by [Date].","Demand for Extension of Payment Date","https://templates.business-in-a-box.com/imgs/1000px/demand-for-extension-of-payment-date-D444.png","https://templates.business-in-a-box.com/imgs/250px/444.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#444.xml",{"title":162,"description":6},"demand for extension of payment date",[164,165],{"label":17,"url":115},{"label":166,"url":167},"Administration","business-administration","demand for extension payment date","/template/demand-for-extension-of-payment-date-D444",{"description":171,"descriptionCustom":6,"label":172,"pages":173,"size":92,"extension":10,"preview":174,"thumb":175,"svgFrame":176,"seoMetadata":177,"parents":179,"keywords":178,"url":186},"SECURED LUMP-SUM PROMISSORY NOTE AGREEMENT This Secured Lump-Sum Promissory Note Agreement (the \"Agreement\") is effective [DATE], BETWEEN: [FIRST PARTY NAME], (the \"Issuer\") a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE] with its head office located at/Individual having an address at: [YOUR COMPLETE ADDRESS] AND: [SECOND PARTY NAME], (the \"Holder\") company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE] with its head office located at/Individual having an address at: [YOUR COMPLETE ADDRESS] FOR VALUE RECEIVED, the undersigned Issuer hereby promises to pay to the order of the Holder, the maximum Principal Amount of [PRINCIPAL AMOUNT] together with interest on the unpaid Principal Amount (as defined in this Agreement) outstanding from time to time at the rate (or rates) hereafter specified, and all other sums which may be owing to the Holder by the Issuer hereunder. The terms of the Note are as follows: MATURITY DATE AND PAYMENT TERMS This Note will mature, and be due and payable in full, on [DATE] (the \"Maturity Date\") and shall be paid in the lump sum amount of [LUMP SUM AMOUNT TO BE PAID]. INTEREST From and after the date hereof, all outstanding principal of this Note will bear simple interest at the rate of [PERCENT OF INTEREST] per annum. On the date that is [NUMBER OF DAYS] days after the date of this Note, the Issuer shall pay the then accrued interest on this Note. Upon the occurrence and during the continuance of any Event of Default (as hereinafter defined) under this Note, all outstanding principal of this Note shall bear interest at the rate of [PERCENT OF INTEREST] per annum. All outstanding principal and accrued but unpaid interest on this Note shall be payable on the Maturity Date. SECURITY This Note is Secured by a Security Agreement on the Issuer's Property, described as [PROPERTY DESCRIPTION], hereinafter known as the \"Security,\" which shall transfer to the possession and ownership of the Holder immediately in case of Acceleration. The Security may not be sold or transferred without the Holder's consent until the Maturity Date. If the Issuer breaches this provision, the Holder may declare all sums due under this Note immediately due and payable, unless prohibited by applicable law. The Holder shall have the sole option to accept the Security as full payment for the Principal Amount without further liabilities or obligations. If the market value of the Security does not exceed the Principal Amount, the Issuer shall remain liable for the balance due while accruing interest at the maximum rate allowed by law. PREPAYMENT The Issuer may prepay this Note prior to the Maturity Date, without premium or penalty, upon written notice to the Holder. EVENTS OF DEFAULT The occurrence of any one or more of the following events shall constitute an \"Event of Default\" under this Note: the failure of the Issuer to pay any sum due under this Note when due, whether by demand or otherwise, and such sum remains unpaid for five (5) days after the Due Date; and any other Event of Default described in the Security Agreement that might be signed between the Parties regarding the Property that is pledged as collateral to the loan. RIGHTS AND REMEDIES UPON DEFAULT ","Secured Lumpsum Promissory Note Agreement","4","https://templates.business-in-a-box.com/imgs/1000px/secured-lumpsum-promissory-note-agreement-D13041.png","https://templates.business-in-a-box.com/imgs/250px/13041.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13041.xml",{"title":178,"description":6},"secured lumpsum promissory note agreement",[180,183],{"label":181,"url":182},"Business Plan Kit","business-plan-kit",{"label":184,"url":185},"Business Procedures","business-procedures","/template/secured-lumpsum-promissory-note-agreement-D13041",false,{"seo":189,"reviewer":200,"legal_disclaimer":204,"quick_facts":205,"at_a_glance":207,"personas":211,"variants":236,"glossary":261,"clauses":298,"how_to_fill":349,"common_mistakes":390,"faqs":415,"industries":443,"comparisons":460,"diy_vs_lawyer":475,"jurisdictions":488,"related_template_ids_curated":509,"schema":521,"classification":522},{"meta_title":190,"meta_description":191,"primary_keyword":192,"secondary_keywords":193},"Guarantee Of Account Template (Free Word)","Free guarantee of account template for securing credit extended to a business. Covers personal guaranty, scope of liability, default, and governing law. Free Word and PDF download.","guarantee of account template",[194,195,196,197,198,199],"guarantee of account form","personal guarantee of account","business credit guarantee template","account guaranty template word","commercial guarantee template","guarantee of payment template",{"name":201,"credential":202,"reviewed_date":203},"Bruno Goulet","CEO, Business in a Box","2026-05-02",true,{"difficulty":206,"legal_review_recommended":204,"signature_required":204,"notarization_required":187},"medium",{"what_it_is":208,"when_you_need_it":209,"whats_inside":210},"A Guarantee of Account is a legally binding agreement in which an individual or entity (the guarantor) promises to pay any outstanding balance owed to a creditor if the primary account holder (the debtor) fails to do so. This free Word download gives suppliers, wholesalers, and trade creditors a signed, enforceable backstop they can edit online and export as PDF before extending credit to a new business customer.\n","Use it when opening a trade credit account for a new business customer whose creditworthiness is unproven, when a small or newly formed company lacks sufficient credit history, or when a lender or supplier requires a personal guarantee from a business owner before approving a line of credit.\n","Identification of the guarantor, debtor, and creditor; a clear statement of unconditional guaranty; scope and cap of liability; default and notice provisions; waiver of defenses; and governing law and signature blocks for all required parties.\n",[212,216,220,224,228,232],{"title":213,"use_case":214,"icon_asset_id":215},"Wholesale suppliers","Securing personal guarantees before opening trade credit accounts for small buyers","persona-supplier",{"title":217,"use_case":218,"icon_asset_id":219},"Small business owners","Providing a personal guarantee to a supplier to obtain credit terms for their company","persona-small-business-owner",{"title":221,"use_case":222,"icon_asset_id":223},"Commercial lenders","Requiring a guarantee of account from business principals before approving a credit line","persona-lender",{"title":225,"use_case":226,"icon_asset_id":227},"Startup founders","Guaranteeing company accounts to access supplier credit when the business has no credit history","persona-startup-founder",{"title":229,"use_case":230,"icon_asset_id":231},"Franchisors","Requiring franchisee principals to personally guarantee supply accounts opened in the franchise's name","persona-franchise-applicant",{"title":233,"use_case":234,"icon_asset_id":235},"Accounts receivable managers","Collecting executed guarantees as a condition of granting net-30 or net-60 payment terms to new accounts","persona-ar-manager",[237,241,245,248,251,255,258],{"situation":238,"recommended_template":239,"slug":240},"Individual owner guaranteeing a business's trade account","Personal Guarantee of Account","guarantee-of-account-D400",{"situation":242,"recommended_template":243,"slug":244},"Parent company guaranteeing a subsidiary's obligations","Corporate Guarantee Agreement","guarantee-agreement-D5194",{"situation":246,"recommended_template":247,"slug":244},"Guarantor securing a specific dollar amount only","Limited Guarantee Agreement",{"situation":249,"recommended_template":250,"slug":240},"Multiple owners jointly guaranteeing a single account","Joint and Several Guarantee of Account",{"situation":252,"recommended_template":253,"slug":254},"Guarantee provided as part of a broader loan package","Personal Guarantee (Loan)","personal-guarantee-D405",{"situation":256,"recommended_template":257,"slug":254},"Guarantee required alongside a lease agreement","Commercial Lease Personal Guarantee",{"situation":259,"recommended_template":260,"slug":240},"Guarantee for a construction or contractor supply account","Contractor Account Guarantee",[262,265,268,271,274,277,280,283,286,289,292,295],{"term":263,"definition":264},"Guarantor","The individual or entity that promises to pay the debtor's obligations to the creditor if the debtor defaults.",{"term":266,"definition":267},"Debtor (Principal)","The business or individual that owes money on the account — the party whose performance the guarantor is backing.",{"term":269,"definition":270},"Creditor (Obligee)","The party extending credit — typically a supplier, lender, or service provider — who benefits from the guarantee.",{"term":272,"definition":273},"Unconditional Guaranty","A guarantee that can be enforced by the creditor without first pursuing the debtor or exhausting other remedies.",{"term":275,"definition":276},"Continuing Guarantee","A guarantee that covers not just the current balance but all future transactions on the account until formally revoked in writing.",{"term":278,"definition":279},"Joint and Several Liability","When multiple guarantors each bear full responsibility for the entire debt — the creditor can collect the total from any one of them.",{"term":281,"definition":282},"Waiver of Defenses","A clause in which the guarantor gives up the right to raise certain legal defenses — such as notice of default or creditor's failure to pursue the debtor first — that would otherwise reduce their obligation.",{"term":284,"definition":285},"Subrogation","The guarantor's right, after paying the creditor, to step into the creditor's shoes and pursue the debtor for reimbursement.",{"term":287,"definition":288},"Indemnification","A contractual obligation by the debtor to reimburse the guarantor for any amounts the guarantor pays out under the guarantee.",{"term":290,"definition":291},"Revocation","The process by which a continuing guarantor formally terminates their guarantee for future transactions, typically by written notice — prior balances already incurred usually remain covered.",{"term":293,"definition":294},"Consideration","The benefit the guarantor receives in exchange for signing — typically the creditor's agreement to extend or continue credit to the debtor.",{"term":296,"definition":297},"Default","The triggering event — usually a missed payment or insolvency — that allows the creditor to demand payment directly from the guarantor.",[299,304,309,314,319,324,329,334,339,344],{"name":300,"plain_english":301,"sample_language":302,"common_mistake":303},"Parties identification","Names and identifies the three parties: the guarantor, the debtor (account holder), and the creditor (supplier or lender) with their full legal names and addresses.","This Guarantee of Account is entered into as of [DATE] by [GUARANTOR FULL NAME], residing at [ADDRESS] ('Guarantor'), in favor of [CREDITOR LEGAL NAME], a [STATE] [ENTITY TYPE] ('Creditor'), with respect to the account of [DEBTOR LEGAL NAME] ('Debtor').","Using a trade name instead of the guarantor's legal name. If the guarantor's name does not match government ID, enforcing the guarantee in court becomes significantly more difficult.",{"name":305,"plain_english":306,"sample_language":307,"common_mistake":308},"Guarantee of payment","The core promise — the guarantor unconditionally agrees to pay all amounts owed by the debtor on the account if the debtor fails to pay when due.","Guarantor unconditionally and irrevocably guarantees to Creditor the full and prompt payment of any and all amounts owed by Debtor on Account No. [ACCOUNT NUMBER], including principal, interest, and any fees or collection costs.","Using 'guarantee of collection' language instead of 'guarantee of payment.' A collection guarantee requires the creditor to exhaust remedies against the debtor first — defeating most of the protective value of the document.",{"name":310,"plain_english":311,"sample_language":312,"common_mistake":313},"Scope and continuing nature","Confirms that the guarantee covers all present and future balances on the account — not just the amount outstanding at signing — and remains in force until formally revoked in writing.","This is a continuing guarantee and shall apply to all indebtedness of Debtor to Creditor arising at any time, including amounts incurred after the date of this Agreement, until Guarantor delivers written notice of revocation to Creditor.","Failing to specify that the guarantee is 'continuing.' Without this language, a court may limit the guarantee to the balance outstanding at the time of signing, leaving future credit extensions unprotected.",{"name":315,"plain_english":316,"sample_language":317,"common_mistake":318},"Liability cap (optional)","Sets the maximum dollar amount the guarantor can be required to pay — used when parties agree to limit exposure rather than guaranteeing the full account balance.","Notwithstanding any other provision, Guarantor's total liability under this Agreement shall not exceed [MAXIMUM AMOUNT] in the aggregate.","Omitting a liability cap when the account has no credit limit. Without a cap, a guarantor can face unlimited personal exposure as the account balance grows.",{"name":320,"plain_english":321,"sample_language":322,"common_mistake":323},"Waiver of defenses and notice","The guarantor waives standard legal defenses — such as requiring the creditor to first sue the debtor, requiring notice of default, or any change in the debtor's financial condition — that would otherwise delay or reduce enforcement.","Guarantor waives: (a) notice of Debtor's default; (b) notice of acceptance of this Guarantee; (c) demand for payment; (d) protest; and (e) any right to require Creditor to proceed against Debtor before enforcing this Guarantee.","Leaving out a waiver of the 'suretyship defense.' Without it, a guarantor may successfully argue that any modification to the credit terms — such as an extended payment period — released them from liability.",{"name":325,"plain_english":326,"sample_language":327,"common_mistake":328},"Representations and warranties","The guarantor confirms they have read the agreement, have authority to sign, are not signing under duress, and that the information provided about them is accurate.","Guarantor represents and warrants that: (a) Guarantor has the legal capacity to enter into this Agreement; (b) this Agreement constitutes a valid and binding obligation of Guarantor; and (c) no consent or approval of any third party is required for Guarantor to perform hereunder.","No representations clause at all. Without it, a guarantor who later claims they lacked capacity or were misled has an easier path to voiding the agreement.",{"name":330,"plain_english":331,"sample_language":332,"common_mistake":333},"Default and remedies","Defines what constitutes a default (missed payment, insolvency, breach of the account terms) and what actions the creditor may take — immediate demand for full payment, collection costs, and legal fees.","Upon Debtor's failure to pay any amount when due, Creditor may, without prior notice or demand, require Guarantor to pay the full outstanding balance immediately. Guarantor shall also be liable for Creditor's reasonable attorney's fees and collection costs.","Not including attorney's fees in the remedies clause. Without an express fee-shifting provision, the creditor must absorb legal costs even on a successful collection — reducing the practical value of the guarantee.",{"name":335,"plain_english":336,"sample_language":337,"common_mistake":338},"Subrogation and indemnification","After paying the creditor, the guarantor inherits the creditor's rights against the debtor and may seek reimbursement from the debtor for amounts paid.","Upon payment of all amounts due hereunder, Guarantor shall be subrogated to the rights of Creditor against Debtor to the extent of such payment and shall be entitled to indemnification from Debtor for all amounts paid by Guarantor.","Waiving subrogation rights entirely. A guarantor who waives subrogation gives up their right to recover from the debtor after paying the creditor — turning the guarantee into a gift rather than a secured backstop.",{"name":340,"plain_english":341,"sample_language":342,"common_mistake":343},"Governing law and jurisdiction","Specifies which state or country's law governs the agreement and which courts have jurisdiction to resolve disputes.","This Agreement shall be governed by and construed in accordance with the laws of the State of [STATE], without regard to conflict-of-law principles. Any legal action shall be brought exclusively in the courts of [COUNTY], [STATE].","Choosing a governing law with no connection to where either party operates. Courts in the debtor's or guarantor's home state may apply local consumer protection laws regardless of what the contract specifies.",{"name":345,"plain_english":346,"sample_language":347,"common_mistake":348},"Signature and acknowledgment","The signature block where the guarantor, and optionally a witness or notary, signs and dates the agreement — confirming they have read, understood, and voluntarily executed it.","IN WITNESS WHEREOF, Guarantor has executed this Guarantee of Account as of the date first written above. GUARANTOR: [GUARANTOR SIGNATURE], [PRINTED NAME], Date: [DATE]. ACCEPTED BY CREDITOR: [CREDITOR SIGNATURE], [TITLE], Date: [DATE].","Having only the guarantor sign without a creditor acceptance signature. Some jurisdictions require evidence of the creditor's acceptance for the guarantee to be enforceable as a bilateral agreement.",[350,355,360,365,370,375,380,385],{"step":351,"title":352,"description":353,"tip":354},1,"Identify all three parties with full legal names","Enter the guarantor's full legal name and home address, the debtor's full registered business name and address, and the creditor's full legal entity name and business address. Do not use trade names or abbreviations.","Ask the guarantor to provide a copy of government-issued ID to confirm the name match before execution — a mismatch can void enforcement.",{"step":356,"title":357,"description":358,"tip":359},2,"Reference the specific account being guaranteed","Insert the account number, credit limit, and any existing balance at the time of signing. This ties the guarantee to a specific credit relationship rather than all obligations the debtor may have with the creditor.","If no account number has been assigned yet, describe the account by type and date opened so the reference is unambiguous.",{"step":361,"title":362,"description":363,"tip":364},3,"Decide on continuing versus limited guarantee","Choose whether the guarantee covers only the current balance (limited) or all future transactions on the account (continuing). A continuing guarantee is standard for trade credit accounts where new purchases will occur regularly.","If the debtor is a startup with unpredictable growth, include a liability cap to limit the guarantor's maximum exposure to a defined dollar amount.",{"step":366,"title":367,"description":368,"tip":369},4,"Set or confirm the liability cap","Enter the maximum amount the guarantor can be required to pay, or explicitly state that the guarantee is unlimited. If you include a cap, set it at 120–150% of the credit limit to cover interest and collection costs.","Courts in some jurisdictions will not enforce an unlimited personal guarantee against a consumer guarantor — confirm the applicable rule before removing the cap.",{"step":371,"title":372,"description":373,"tip":374},5,"Review and retain the waiver-of-defenses clause","Confirm that the waiver of defenses, notice, and demand language is present and unaltered. This clause is the most operationally critical for the creditor — without it, collection requires additional procedural steps.","If the guarantor pushes back on the waiver clause, the minimum acceptable compromise is a waiver of the requirement to pursue the debtor first — preserve that even if you concede on notice.",{"step":376,"title":377,"description":378,"tip":379},6,"Execute before the credit account is opened","Both the guarantor and an authorized representative of the creditor must sign and date the agreement before any credit is extended. Post-execution guarantees — signed after credit has already been granted — may lack consideration and be unenforceable.","Collect the signed guarantee before entering the account into your ERP or accounting system — this enforces the process discipline that prevents unsigned accounts slipping through.",{"step":381,"title":382,"description":383,"tip":384},7,"Store and track executed guarantees","Retain the original signed guarantee in the customer's credit file. Note the execution date, guarantor identity, and any liability cap in your accounts-receivable system so collectors can reference it immediately on default.","Set a calendar reminder to request an updated guarantee if the debtor's ownership structure changes — a guarantee signed by a prior owner does not automatically bind a new owner.",{"step":386,"title":387,"description":388,"tip":389},8,"Notify the guarantor on default before pursuing legal action","Even where notice is waived, send written notice to the guarantor when the debtor defaults — by email and certified mail. This establishes a clear timeline, reduces dispute risk, and is required in some jurisdictions regardless of the waiver.","Document every communication with the guarantor after default in a dated log. Courts weigh the creditor's conduct heavily in guarantee enforcement disputes.",[391,395,399,403,407,411],{"mistake":392,"why_it_matters":393,"fix":394},"Using 'guarantee of collection' instead of 'guarantee of payment'","A guarantee of collection requires the creditor to exhaust all legal remedies against the debtor before demanding payment from the guarantor — adding months of delay and litigation costs before any recovery.","Use 'unconditional guarantee of payment' language explicitly and confirm the waiver-of-defenses clause removes any requirement to pursue the debtor first.",{"mistake":396,"why_it_matters":397,"fix":398},"Signing the guarantee after credit has already been extended","A guarantee signed after the credit account is already open lacks fresh consideration in most common-law jurisdictions — making the entire document potentially unenforceable.","Make execution of the guarantee a condition precedent to opening the account, and document the sequence: guarantee signed, then account activated.",{"mistake":400,"why_it_matters":401,"fix":402},"Failing to include a liability cap on high-volume accounts","Without a cap, the guarantor's personal exposure grows indefinitely as the account balance increases — making it harder to obtain the guarantee from creditworthy individuals and creating disproportionate risk.","Set the cap at 120–150% of the agreed credit limit to cover principal, accrued interest, and reasonable collection costs.",{"mistake":404,"why_it_matters":405,"fix":406},"Not updating the guarantee when ownership of the debtor changes","A guarantee signed by the previous business owner does not automatically bind the incoming owner — leaving the creditor with an unenforceable guarantee against a new principal they never vetted.","Include a clause requiring the debtor to notify the creditor of any change in ownership and making the guarantee callable on such an event, triggering a new guarantee from the incoming owner.",{"mistake":408,"why_it_matters":409,"fix":410},"Omitting attorney's fees and collection costs from the remedies clause","Without an express fee-shifting provision, the creditor must absorb legal costs even after winning a collection action — substantially reducing the net recovery and the practical deterrent effect of the guarantee.","Add an explicit clause: 'Guarantor shall reimburse Creditor for all reasonable attorney's fees, court costs, and collection expenses incurred in enforcing this Guarantee.'",{"mistake":412,"why_it_matters":413,"fix":414},"Allowing the guarantor to sign as a corporate officer rather than in their personal capacity","If the guarantor signs with a title (e.g., 'John Smith, President') rather than their personal name alone, courts may interpret the signature as a corporate act — eliminating personal liability entirely.","Include a statement that the guarantor is signing in their individual personal capacity, and have them sign twice if needed: once as the corporate officer executing on behalf of the debtor, and once individually as guarantor.",[416,419,422,425,428,431,434,437,440],{"question":417,"answer":418},"What is a guarantee of account?","A guarantee of account is a legally binding agreement in which an individual or entity — typically a business owner — promises to personally pay any outstanding balance owed on a commercial credit account if the primary account holder defaults. It gives suppliers and creditors a second source of repayment beyond the business itself. The guarantee remains in force for future transactions on the account until formally revoked in writing, making it a standard condition for opening trade credit with a new or unproven business customer.\n",{"question":420,"answer":421},"What is the difference between a guarantee of account and a personal guarantee?","A guarantee of account is a specific form of personal guarantee tied to a trade credit account — covering all purchases, invoices, and balances generated on that account. A personal guarantee is a broader term that can apply to any debt obligation, including loans, leases, and contracts. Both documents create personal liability for the guarantor, but a guarantee of account is typically scoped to a defined credit relationship with a specific supplier or creditor rather than a single lump-sum loan.\n",{"question":423,"answer":424},"Is a guarantee of account enforceable?","A guarantee of account is generally enforceable when properly executed — meaning it is signed before credit is extended, identifies all three parties clearly, includes consideration (the creditor's agreement to open or continue the account), and meets any applicable formality requirements in the governing jurisdiction. Courts scrutinize the timing of execution and the clarity of the guarantor's personal capacity. Consider consulting a lawyer for guarantees involving significant credit limits or guarantors in consumer-protection-heavy jurisdictions.\n",{"question":426,"answer":427},"Can a guarantee of account be revoked?","A continuing guarantee of account can typically be revoked by the guarantor for future transactions by delivering written notice of revocation to the creditor. However, revocation does not extinguish liability for balances already outstanding at the time of revocation — the guarantor remains responsible for those amounts. The guarantee agreement should specify the notice method and timing required for revocation to be effective.\n",{"question":429,"answer":430},"What happens if the guarantor dies or becomes insolvent?","Death or insolvency of the guarantor does not automatically terminate the guarantee. In most jurisdictions, the guarantee becomes a claim against the guarantor's estate (in the case of death) or is treated as a debt in the insolvency proceedings. Creditors should monitor the financial status of guarantors on large accounts and consider requiring replacement guarantees when a guarantor's financial position deteriorates materially.\n",{"question":432,"answer":433},"Does a guarantee of account cover interest and fees, not just the principal balance?","Yes — if the guarantee is drafted correctly, it covers the full amount owed under the account, including accrued interest, late fees, and reasonable collection costs. This scope should be stated explicitly in the guarantee of payment clause. A guarantee that covers only the 'principal balance' or 'invoiced amounts' may be interpreted narrowly to exclude fees and interest, reducing the creditor's recovery.\n",{"question":435,"answer":436},"Do I need a notary for a guarantee of account?","Notarization is not required for a guarantee of account to be legally valid in most US states, Canadian provinces, or UK jurisdictions. However, notarization adds an evidentiary layer that makes it harder for a guarantor to claim they did not sign or did not understand the document. For guarantees securing large credit limits, notarization is worth the minor additional cost. Some US states require notarization for guarantees securing real property — confirm the requirement in the governing jurisdiction.\n",{"question":438,"answer":439},"Can a spouse be required to co-sign a guarantee of account?","Requiring a non-owner spouse to co-sign a commercial guarantee is restricted or prohibited under the Equal Credit Opportunity Act (ECOA) in the United States — creditors generally cannot require a spousal signature unless the spouse is a co-owner of the business. Requiring a co-signature in violation of ECOA can void the entire guarantee. In Canada and the UK, similar protections exist — consider consulting a lawyer before adding a co-signer requirement.\n",{"question":441,"answer":442},"What should a creditor do when a guarantor defaults?","Send formal written demand to the guarantor — by certified mail and email — immediately after the debtor misses payment and a grace period has expired. Document all communication. If the guarantee includes a waiver of the requirement to pursue the debtor first, you can proceed directly against the guarantor without litigation against the debtor. Engage a collections attorney early if the balance exceeds your small-claims threshold, as guarantee enforcement actions often move faster with counsel.\n",[444,448,452,456],{"industry":445,"icon_asset_id":446,"specifics":447},"Wholesale and Distribution","industry-wholesale","Suppliers routinely require a personal guarantee before opening net-30 or net-60 trade accounts for new retail or reseller customers with limited credit history.",{"industry":449,"icon_asset_id":450,"specifics":451},"Construction and Building Materials","industry-construction","Lumber yards, electrical suppliers, and plumbing wholesalers use guarantees of account to secure open accounts for contractors whose cash flow is project-dependent and highly variable.",{"industry":453,"icon_asset_id":454,"specifics":455},"Retail and Franchise","industry-retail","Franchisors and branded product suppliers require franchisee principals to personally guarantee supply accounts to ensure payment regardless of the franchisee entity's financial performance.",{"industry":457,"icon_asset_id":458,"specifics":459},"Financial Services and Lending","industry-fintech","Commercial lenders and asset-based lenders pair a guarantee of account with a revolving credit facility, requiring the principal owners to personally guarantee the business line of credit.",[461,464,467,471],{"vs":253,"vs_template_id":462,"summary":463},"personal-guarantee-D12703","A personal guarantee for a loan backs a specific, fixed debt obligation — a lump-sum loan with a defined repayment schedule. A guarantee of account backs a revolving trade credit relationship where the balance fluctuates with each purchase and payment. The loan guarantee is typically a one-time instrument; the account guarantee is continuing and covers future transactions until revoked.",{"vs":106,"vs_template_id":465,"summary":466},"promissory-note-D249","A promissory note is a direct promise by the debtor to repay a specific sum on defined terms — it creates the primary debt obligation. A guarantee of account is a secondary promise by a third party to pay if the primary debtor does not. A note stands alone; a guarantee is always derivative of an underlying credit relationship.",{"vs":468,"vs_template_id":469,"summary":470},"Credit Application","credit-application-D13592","A credit application collects financial information and consent to a credit check — it is the intake form that determines whether credit will be extended. A guarantee of account is the enforceable security instrument that protects the creditor once the decision to extend credit has been made. Both documents are typically executed together when onboarding a new commercial account.",{"vs":472,"vs_template_id":473,"summary":474},"Surety Bond","D{SURETY_BOND_ID}","A surety bond is a three-party instrument in which an insurance company (the surety) guarantees performance or payment to the obligee on behalf of the principal — typically used in construction and government contracts. A guarantee of account is a direct personal obligation by the guarantor, not backed by an insurer. Surety bonds involve underwriting and premiums; a guarantee of account requires only a signature.",{"use_template":476,"template_plus_review":480,"custom_drafted":484},{"best_for":477,"cost":478,"time":479},"Trade creditors, suppliers, and wholesalers opening standard credit accounts with credit limits below $50,000","Free","15 minutes",{"best_for":481,"cost":482,"time":483},"Credit accounts above $50,000, guarantors in California or other consumer-protection-heavy jurisdictions, or multi-guarantor arrangements","$200–$500","1–3 days",{"best_for":485,"cost":486,"time":487},"Complex commercial lending arrangements, cross-border credit accounts, or guarantees tied to equity or real property security","$800–$2,500+","1–2 weeks",[489,494,499,504],{"code":490,"name":491,"flag_asset_id":492,"note":493},"us","United States","flag-us","Guarantees of account are governed by state contract law and, in some cases, the Uniform Commercial Code. The Equal Credit Opportunity Act prohibits creditors from requiring a spousal co-signature unless the spouse is a co-owner. California, New York, and Texas have specific statutes affecting guarantee enforceability — particularly for consumer guarantors and guarantees lacking a defined maximum amount. Some states require the guarantee to be in writing under the Statute of Frauds to be enforceable.",{"code":495,"name":496,"flag_asset_id":497,"note":498},"ca","Canada","flag-ca","Guarantees must be in writing and signed by the guarantor to be enforceable under provincial Statute of Frauds equivalents. Ontario's Mercantile Law Amendment Act gives courts discretion to reduce a guarantor's liability if the creditor's conduct prejudiced the guarantor. Quebec civil law treats guarantees (surety contracts) differently from common-law provinces — specific Quebec-compliant language is required for guarantors domiciled in Quebec.",{"code":500,"name":501,"flag_asset_id":502,"note":503},"uk","United Kingdom","flag-uk","Under the Statute of Frauds 1677, a guarantee must be in writing and signed by the guarantor (or their agent) to be enforceable. The Consumer Credit Act 1974 imposes additional formality requirements for guarantees supporting consumer credit agreements. Courts apply the principle that guarantee terms are construed strictly against the creditor — ambiguous language is interpreted in the guarantor's favor, making precise drafting especially important.",{"code":505,"name":506,"flag_asset_id":507,"note":508},"eu","European Union","flag-eu","Guarantee requirements vary significantly by member state — France, Germany, and Spain each have distinct formality rules. In France, the guarantor must handwrite a specific acknowledgment statement for the guarantee to be valid against a non-commercial guarantor. EU consumer protection directives limit enforcement against individual guarantors in some cross-border credit arrangements. GDPR considerations apply when processing guarantor personal data as part of the credit onboarding process.",[254,510,511,512,513,514,515,516,517,518,519,520],"business-credit-application-D247","promissory-note-D434","loan-agreement-D417","accounts-receivable-D308","demand-for-extension-of-payment-date-D444","secured-lumpsum-promissory-note-agreement-D13041","indemnification-agreement-D13016","non-disclosure-agreement-nda-D12692","service-agreement-D12711","purchase-order-D1411","credit-note-D13639",{"emit_how_to":204,"emit_defined_term":204},{"primary_folder":523,"secondary_folder":524,"document_type":525,"industry":526,"business_stage":527,"tags":528,"confidence":534},"business-legal-agreements","guaranties-and-collateral","agreement","general","all-stages",[529,530,531,532,533],"guarantee","contract","payment","supplier","credit-management",0.95,"\u003Ch2>What is a Guarantee of Account?\u003C/h2>\n\u003Cp>A \u003Cstrong>Guarantee of Account\u003C/strong> is a legally binding agreement in which a guarantor — typically the owner or principal of a business — personally promises to pay any outstanding balance owed on a commercial credit account if the primary account holder fails to do so. Unlike a one-time loan guarantee, a guarantee of account is typically a continuing instrument: it covers not just the balance at the time of signing but all future purchases and invoices generated on the account until the guarantor formally revokes it in writing. Suppliers, wholesalers, and trade creditors use this document as a standard condition of extending net-30 or net-60 payment terms to new business customers whose creditworthiness has not yet been established.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Extending trade credit without a signed guarantee of account leaves the creditor with a single point of recovery — a business entity that may have minimal assets, no credit history, and the ability to dissolve overnight. When a small or newly formed company defaults on an open account, the creditor often has no practical avenue to recover. A properly executed guarantee of account changes the equation entirely: the creditor gains direct, enforceable access to the guarantor's personal assets without first exhausting litigation against the business. Accounts that go unpaid for 90 or more days typically recover at much higher rates when a personal guarantee is on file compared to unsecured trade accounts. For businesses that extend significant credit to new customers regularly, collecting guarantees at account opening is one of the lowest-cost credit risk controls available — and this template gives you a ready-to-sign document that covers the core provisions every enforceable guarantee requires.\u003C/p>\n",1781186014494]