Personal guarantee on a copier lease: what you're signing for
A personal guarantee is a promise to pay your business's copier lease yourself if the business can't. It is commonly asked for when a business is new or has thin credit. At $209 to $349 a month, here is what it puts at stake.
Worked at our published $209-$349 full-size monthly range, 0% escalation, $0 down. Your lease and guarantee set what you would actually owe.
2 signatures: what a personal guarantee is
2 signatures: one for the business on the lease, one for you on the guarantee.
In industry practice, the lease is an agreement between the lessor and the business. A personal guarantee is a separate promise between the lessor and an owner. If the business stops paying, the lessor can commonly ask the guarantor to pay what is owed.
Because it is a separate promise, it commonly stays in force even if the business closes. Many lessors ask for one when a business is new, has limited credit history, or is taking on a payment that is large for its size. Many established businesses lease without one.
Our FAQ states: “Options for limited or damaged credit include shorter terms, a personal guarantee, a larger first payment, or a rental agreement instead of a lease.” See leasing with limited credit.
A copier rental is a different agreement.
63 months: how much is at stake when you sign
63 months of payments is the most a guarantee on our longest term would commonly cover.
In these industry examples, a guarantee commonly covers the payments the business still owes. On the day you sign, that is the monthly payment multiplied by the months in the term. The amount you would owe is set by the lease and the guarantee you sign, not by this example.
36 months: $209.00 x 36 = $7,524.00 | $349.00 x 36 = $12,564.00
48 months: $209.00 x 48 = $10,032.00 | $349.00 x 48 = $16,752.00
60 months: $209.00 x 60 = $12,540.00 | $349.00 x 60 = $20,940.00
63 months: $209.00 x 63 = $13,167.00 | $349.00 x 63 = $21,987.00
| Term | At $209/mo | At $349/mo |
|---|---|---|
| 36 months | $7,524.00 | $12,564.00 |
| 48 months | $10,032.00 | $16,752.00 |
| 60 months | $12,540.00 | $20,940.00 |
| 63 months | $13,167.00 | $21,987.00 |
Monthly payment multiplied by the months in the term, at 0% escalation and $0 down. Overage not included. Some guarantees also cover late fees, collection costs or legal costs; check yours.
On a lease with an annual escalation clause the payments, and so the amount guaranteed, would climb each year.
15 payments: how the amount shrinks as the business pays
15 payments left after 48 months on a 63-month lease.
Each payment the business makes lowers what is still owed, so a guarantee commonly covers less as the lease runs. These examples show remaining payments only; check your guarantee for what else it covers.
After 12 payments: 63 - 12 = 51; $209.00 x 51 = $10,659.00 | $349.00 x 51 = $17,799.00
After 24 payments: 63 - 24 = 39; $209.00 x 39 = $8,151.00 | $349.00 x 39 = $13,611.00
After 36 payments: 63 - 36 = 27; $209.00 x 27 = $5,643.00 | $349.00 x 27 = $9,423.00
After 48 payments: 63 - 48 = 15; $209.00 x 15 = $3,135.00 | $349.00 x 15 = $5,235.00
After 60 payments: 63 - 60 = 3; $209.00 x 3 = $627.00 | $349.00 x 3 = $1,047.00
| Payments made | Payments left | Still owed at $209/mo | Still owed at $349/mo |
|---|---|---|---|
| 12 | 51 | $10,659.00 | $17,799.00 |
| 24 | 39 | $8,151.00 | $13,611.00 |
| 36 | 27 | $5,643.00 | $9,423.00 |
| 48 | 15 | $3,135.00 | $5,235.00 |
| 60 | 3 | $627.00 | $1,047.00 |
Remaining payments on a 63-month lease at 0% escalation. What a guarantor would actually owe is set by the lease and the guarantee, and may include other charges.
A copier lease is non-cancelable, and missed payments can make the remaining balance due; see getting out of a copier lease.
$5,643.00-$9,423.00: how a shorter term changes it
$5,643.00 to $9,423.00 less behind your signature on a 36-month lease than on a 63-month one.
At the same monthly range, a shorter term lowers the total payments at signing, and therefore the payment amount a guarantee would commonly cover. This compares payments only; your lease and guarantee set your actual commitment.
63 vs 36 months: $13,167.00 - $7,524.00 = $5,643.00 | $21,987.00 - $12,564.00 = $9,423.00
63 vs 48 months: $13,167.00 - $10,032.00 = $3,135.00 | $21,987.00 - $16,752.00 = $5,235.00
63 vs 60 months: $13,167.00 - $12,540.00 = $627.00 | $21,987.00 - $20,940.00 = $1,047.00
| Compared with 63 months | Less at $209/mo | Less at $349/mo |
|---|---|---|
| 36 months | $5,643.00 | $9,423.00 |
| 48 months | $3,135.00 | $5,235.00 |
| 60 months | $627.00 | $1,047.00 |
Difference in total payments at signing, at our published $209-$349 full-size monthly range and 0% escalation.
For the full pricing picture, see what a lease costs.
4 questions: what to ask before you sign a guarantee
4 questions to ask any lessor before you sign a personal guarantee.
- Is a personal guarantee required for this lease, or is there another option?
- Is the guarantee capped at a set amount, or does it cover everything owed under the lease, including fees and costs?
- Does it cover this lease only, or other agreements with the same lessor too?
- What releases the guarantee, and will that release be confirmed in writing?
This page is general information, not legal advice, and a guarantee is a personal commitment worth having reviewed before you sign.
0% escalation: where we stand
0% escalation on every term, and $0 down.
Our terms are 36, 48, 60 or 63 months, with $0 down and 0% escalation on every term. We publish $209 to $349 a month for a full-size 45ppm colour multifunction with service, parts, labor and toner included, so the payment a guarantee stands behind does not rise during the term.
You can estimate your monthly payment.
6 questions about personal guarantees
Do I have to sign a personal guarantee on a copier lease?
Not always. In industry practice, a personal guarantee is commonly asked for when a business is new or has limited credit history. Many established businesses lease without one. Ask the lessor whether a guarantee is required for the lease you are considering, and read the separate promise before you sign it.
What is a personal guarantee on a copier lease?
A personal guarantee is commonly a separate promise by an owner to pay a business's copier lease personally if the business does not pay. The business signs the lease, and the owner signs the guarantee. Many guarantees cover the payments still owed; some also cover late fees, collection costs or legal costs. Check your guarantee.
How much am I liable for under a personal guarantee?
On a 63-month lease at $209-$349 a month, the payments total $13,167.00 to $21,987.00 at signing. The amount commonly shrinks with each payment the business makes. Your lease and guarantee set what you would owe, and some guarantees also cover late fees, collection costs or legal costs on top of those payments.
Does a personal guarantee end if my business closes?
Not necessarily. In industry practice, a personal guarantee is commonly a separate promise between the lessor and an owner, so it can stay in force after the business closes. The business closing does not by itself tell you whether that promise has ended. Check your guarantee for what it covers and what releases it.
Can I lease a copier without a personal guarantee?
Many established businesses lease without a personal guarantee, but whether one is required depends on the lease offered. Printree's FAQ states: “Options for limited or damaged credit include shorter terms, a personal guarantee, a larger first payment, or a rental agreement instead of a lease.” Ask the lessor whether a guarantee is required for your agreement.
How do I get released from a personal guarantee?
Release terms are set by the guarantee you sign. Ask the lessor what releases the guarantee, whether it covers this lease only or other agreements too, and whether any release will be confirmed in writing. Check your guarantee rather than assuming a release. A guarantee is a personal commitment worth having reviewed before you sign.