Personal Guarantee (MCA)
A commitment making the business owner personally liable if the business cannot pay. In MCA agreements it typically guarantees performance, that the merchant will not breach the contract, but in practice funders pursue guarantors personally after default: personal credit, personal assets, personal bank accounts.
Why it matters
The guarantee is why an MCA default follows owners home and why resolving the debt through negotiation beats unmanaged default. Watch for guarantee language buried in performance covenants and for requests that a spouse co-sign.
Go deeper
