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Post by aceman on May 17, 2016 8:14:17 GMT
Hello mates, I 'm about 1 month at mintos and it's my 1st time to p2p lending systems. I have a query. Mintos has BuyBack guarantee loans and not. Few loans without BB guarantee have " Personal guarantee: yes". What does it means? I know with BBg loans you have your money back after 60 days late, but what about with personal guarantee? Thank you.
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Post by littleinvestor on May 17, 2016 8:55:34 GMT
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JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,317
Likes: 893
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Post by JamesFrance on May 17, 2016 10:07:23 GMT
I suppose it all depends on the legal system in the borrower's country of residence, but you should be aware that UK guarantors have frequently failed to pay up, so don't rely on them for business loans unless there is a charge over an asset.
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Post by extremis on May 17, 2016 18:26:13 GMT
Small businesses may not have assets to offer as collateral, so a personal guarantee is given instead. It is the written promise of the business owner that he will pay back the loan if the business fails to for any reason. As far as i understand, it means that lenders have a legal claim over the personal assets (if any) of the guarantor. IMHO, a personal guarantee is not as good as collateral, but still better than nothing.
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Post by aceman on May 17, 2016 20:23:56 GMT
Thanks for the answers littleinvestor and extremis.
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