By Jeffrey Brown, a Principal of Matthews Folbigg, in our Insolvency, Restructuring and Debt Recovery Group.
The concept is simple enough: your terms of trade contain a section to be completed and signed by a person who agrees to personally guarantee all debts of your customer. If the customer can’t or won’t pay, you can turn to the guarantor for payment.
The guarantee is a tried and trusted part of the debt collection strategy for many businesses.
Far too often, we see instances where claims for payment made against guarantors run into serious trouble. [...]
