Do I need a personal guarantee for business working capital?
In most cases yes, at least in some form. Nearly all small-business working capital carries either a personal guarantee or a performance guarantee from the owner. It is worth separating three things that get confused: a guarantee is a promise to stand behind the obligation, a credit check is how the funder assesses you, and collateral is a specific asset pledged. Many revenue-based products involve the first, a soft version of the second, and none of the third.
What is the difference between a personal and a performance guarantee?
A personal guarantee makes the owner responsible for the balance. A performance guarantee is narrower: it holds the owner responsible only if they interfere with repayment — closing the account, diverting deposits, or misrepresenting the business — rather than for ordinary business failure. Revenue-based products frequently use the narrower version.
Does a guarantee mean a hard credit pull?
No. Guarantee and credit inquiry are separate. Our prequalification uses a soft pull, which does not affect your score; a hard pull, if one happens at all, comes later and only with your consent.
Can I get working capital with no guarantee at all?
It is uncommon at small-business size. Where it exists, it usually means the financing is secured by something else — receivables, equipment, or a deposit relationship — so the guarantee is replaced by collateral rather than removed.
Check what you qualify for
Four questions, a soft pull only, and no upfront fee. We are a broker: we place your file with funders and are paid by the funder on close, so nothing is charged to you to apply.
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