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An unlimited suretyship agreement imposes no limit on the guarantor’s liability to repay debt.
- Provides comprehensive payment guarantee.
- Guarantees payment for any amount owed.
- Offers greater financial security.
Summary An Unlimited Suretyship may be used where a debt is owed or may in the future be owed by someone, and additional security is required in the form of another person accepting personal liability for the debt.
Why do I need a Suretyship? An Unlimited Suretyship provides a supplier or creditor with additional security. If the customer or debtor defaults, the creditor may use the suretyship to demand payment from the surety. If your business has customers or debtors that are likely to owe money, for example the provision of goods and services on credit, then an Unlimited Guarantee can be used to reduce the risk of non-payment. Particularly if your customers or debtors are legal entities such as companies or trusts, where the directors, shareholders or trustees can be requested to personally guarantee the entity’s debt. But it can also be used by someone standing surety for their spouse, parent, child, friend or partner.
What does the Suretyship look like? This template suretyship can be printed onto two pages.
What do you need to do to use a Suretyship?
- Read the sample suretyship document to ensure that it suits your requirements. Make changes as required.
- Complete the relevant details and get the surety or sureties to sign.
This is an unlimited payment guarantee. We also have Limited Suretyships if you need the guarantors to sign a payment undertaking that is limited to a maximum amount or duration of time. Our Limited Guarantees are limited as to: amount & cause of debt; time (expiry date); amount; time & amount; and cause of debt.
A specialist’s advice should be sought, specifically if the underlying debt is subject to the National Credit Act 34 of 2005.
Also viewed: Acknowledgement of Debt
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