"When you agree to extend credit to a business, you expect to be paid. In many cases, especially for small and mid-sized companies, you aren’t basing your decision just on the business itself. You’re also relying on a personal guarantor, typically an owner or executive, to fulfill the debt obligation if the company cannot. Go through this pdf to know more: https://www.scrible.com/view/source/J2QG041H20GQG2JG2047K9OK0968MM0B:1502697999/