corporate guaranty


A guaranty to a lender that a loan will be repaid, guaranteed by a company other than the one who took the loan. Typically, a larger company (often a parent company, or another related company) will make the guarantee on behalf of a smaller company who may not be well known or have developed a relationship with the lender.

Use corporate guaranty in a sentence

We are in the process of adding additional product lines through our subsidiary to be funded by a loan with a corporate guaranty.

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A good safety to a lender is a corporate guaranty which will assure the lender that any funds that are loaned out with be paid back in full.

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Since they were only a small start up company that needed capital, they brokered a deal with another company to be the corporate guaranty on their loan.

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