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PERSONAL GUARANTEE INSURANCE

Nowadays, when soliciting a commercial property loan, borrowers are prepared to pay 25% or more of the loan value as a down payment. Depending on the fixed term of the loan, commercial loan rates go from under 5% to over 7.5% (steelheadcapital.com). Additionally, to secure a loan, borrowers will need to sign a personal guarantee.

These are some of the trade-offs for historically low interest rates and reductions in price.

Those commercial real estate investors and small and medium sized business owners who are looking at loans in today’s market may want to consider Personal Guarantee Insurance (PGI). PGI protects borrowers’ personal wealth in the event that there is a problem or unforeseen event that affects a person’s ability to pay back a loan. “If after liquidating business assets, the lender se... http://go-travel.ucoz.com/news/personal_guarantee_insurance/2013-06-25-4199