After weighing the pros and cons of copier leasing, you have made up your mind to opt for a copier lease as additional equipment for your office. After several days, the company you opt for that offers copier leasing services needs you to make a personal guarantee to start the funding process. Some might get surprised after knowing this, but this happens in most companies that require financing.
After knowing all of these, you might be asking yourself “What is a personal guarantee?” In this post, we are going to share with you the meaning of personal guarantee as well as its impact on your business and personal finances. This article also helps you whether or not signing a personal guarantee is beneficial for you and your business. So, if you want to know more about it, then keep on reading and enjoy!
What is a Personal Guarantee?
Before we move onto the deeper section of this post, let us first explain the meaning of a personal guarantee. When it comes to copier leasing in Riverside, a personal guarantee requires your credit history as well as personal finances to know whether or not your company is capable of making a purchase. This works the same as co-signing a brand-new vehicle.
In other words, if your company has two years of less worthy of a good credit history, the copier leasing company will require you to present your finances to start the funding process. Copier leasing services in Boston are popular in small to medium-sized businesses that don’t have enough money to purchase a brand-new office machine.
Is it Better to Sign a Personal Guarantee for the Improvement of Your Business?
Whether or not to sign a personal guarantee will always depend on the decision of the business owner. Generally, most business owners find it intimidating to include your personal credit in the expenses of your company.
If you still have doubts if signing a personal guarantee is Yay or Nah, then we have provided different methods you may consider to have an easier decision-making process.
Decide to Build a Credit
With your personal credit, there is a possibility to create a good business credit history in the future. You may consider signing a personal guarantee to finance the small assets of your business. Through this, you can build good overall credit for your organization. If you have completed lease terms and successful payments, your business has a higher chance to qualify for leasing opportunities in the future.
Decide According to your Total Lease Investment
Ask yourself what personal items you can lose if your business cannot pay the leasing amount on time. You should ask yourself if you can afford to lose these personal items, such as your computer. Having an insufficient amount of money to pay for leasing on time happens in most companies that avail of copier leasing services, which is normal.
Decide According to Your Necessity
Most companies out there require a copier. If you are also one of them, then you should consider signing the personal guarantee contract. But again, the decision will always depend on your personal preference and finances.
Despite your decision, it is important to read and comprehend the terms and conditions included in the personal agreement. If there are some sections that you don’t understand, ask the leasing company to ensure that you are making the right decision to benefit your company.
In most cases, a lot of organizations become successful when the owners decide to sign for a personal guarantee. Aside from that, it also helps for building a good company’s credit history.