What Are Personal or Corporate Guarantees?
Michael R.
Capital Markets@Mountbatten Global|Direct Lender, Lic’d&Reg’d Fund|Loans Against Stocks&Cryptos $1M+|Liquidity for Listed Co’s,Executives,Founders,HNWI/UHNWI&Family Offices|
With regards to lending, personal or corporate guarantees are the borrower's promise to repay the loan even if a default occurs and there is an unpaid or deficient balance after the collateral is liquidated to settle the loan balance.
This guarantee means that should a borrower fail to settle any remaining loan balance after liquidation of the collateral, the borrower can face legal recourse by the lender.
In many cases, legal recourse can include:
Depending on the market, borrowers can also face the following:
For these reasons, non-recourse loans such as Mountbatten's Securities Financing products are a great alternative to traditional margin loans for borrowers who wish to avoid the risks associated with having to provide personal or corporate guarantees.
A non-recourse loan loans is secured solely by the collateral provided which is the only thing at risk should a default occur.
So, if you or a client are interested in borrowing against assets such as publicly traded securities and select crypto currencies as the collateral, we ask that you consider a Securities Financing product from Mountbatten Global.
Michael Rowe
Director
The Mountbatten Global SPC Fund