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A corporate guarantee is also written as a "guaranty" or "corporate guaranty." This guarantee benefits the debtor and the lender. For the lender, the loan is more secure since the guarantor assures that the money will be repaid. A debtor can become eligible for a loan that they wouldn't have otherwise qualified for, thanks to the assurance provided by the guarantor. Debtors with lower credit scores might need corporate guarantees to qualify for loans.
The three main parties in a standard corporate guarantee are:
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