Q:

What should you include on a letter of guarantee?

A:

Quick Answer

When preparing a guarantor letter, provide the prospective lender or landlord details of the guarantor's identity, scope of responsibility and financial standing, explains Jorina Fontelera for SFGate. Tax returns, income statements, a credit score, and an asset and liability statement are needed by the guarantor.

Continue Reading

Full Answer

The letter should include a full explanation as to why the guarantor is financially able to accept the level of responsibility, according to Fontelera. Outline the evidence of the guarantor's financial standing, including a statement of income and assets. The name and contact information of the guarantor's accountant is helpful for reference in attesting to the guarantor's financial standing. If possible, include a list of character references with contact information.

A full detail of amounts the guarantor is responsible for and when these amounts are due is important to include, states Fontelera. The writer should include a statement by the guarantor acknowledging responsibility and authorizing the lender or landlord to conduct a full background check on the guarantor. Print the guarantor's name on the bottom of the letter and include the guarantor's signature. Provide copies to the prospective lender or landlord, the prospective borrower or tenant, the guarantor's attorney or financial adviser, if applicable, and a copy to the guarantor.

Learn more about Credit & Lending

Related Questions

Explore