Business Guarantee

Business guarantee means the business is taking responsibility for the debt being incurred.

This is usually done for larger and more established businesses, because they have more history (and probably more assets) for the bank or credit card company to review and extend credit to.

This is the opposite of a personal guarantee. A personal guarantee is a business owner or shareholder taking personal responsibility for debts occurred by the business. A personal guarantee is more common for a new or small business. Which option a business chooses will largely depend on the financial position of the business, the credit of the business, and the comfort level of the owner in taking personal responsibility for the business expenses.