Personal Guarantee.

A personal guarantee is a document that is typically used in conjunction with a loan or line of credit. The personal guarantee essentially states that the individual signing the document is personally responsible for repaying the loan should the borrower default. In most cases, the personal guarantee will also stipulate that the individual’s personal assets … Read more

What is Risk-Based Pricing?

Risk-based pricing is the practice of setting the interest rate on a loan based on the borrower’s credit risk. The higher the borrower’s credit risk, the higher the interest rate will be. This is because lenders want to offset the increased risk of default by charging a higher interest rate. Risk-based pricing is used by … Read more