The difference between a Personal and Corporate Guarantee is that the guarantor in each agreement is either an individual or a corporation, respectively. Personal Guarantees often suit situations where the debtor has poor or no credit. For instance, someone’s parents may sign a Personal Guarantee to help their son or daughter secure their first rental agreement. A landlord may require a guarantee if the young adult has no rental history or line of credit, or has a low income. A company director may also use a Personal Guarantee when seeking funding for their business. Depending on the company’s structure, a director may not be liable for the business’s debts or liabilities. However, by signing a guarantee, the director takes personal responsibility for the debt and bypasses their limited liability. Corporate Guarantees often suit business development situations where a company takes out a significant loan from a bank or money lender. A small business that needs capital might also strike a deal with a larger company to be the corporate guarantor on a loan.