Ever signed a business loan or lease thinking your personal assets were safe? In Florida, that assumption can cost you everything. Personal guarantees are a common requirement for business owners seeking credit, leases, or vendor accounts. But one overlooked clause can turn a business default into a personal financial disaster.
Florida law treats personal guarantees with strict enforcement. Under Fla. Stat. § 687.0304 and § 673.4011, if you sign a personal guarantee—even as part of a business transaction—you’re personally liable if the business can’t pay. Lenders and landlords know this, and they’ll pursue your home, savings, and investments if your company defaults. Many business owners don’t realize they’ve agreed to these terms until it’s too late, often because the guarantee is buried in the fine print or presented as a “standard” requirement.
The most common mistake? Signing without reading or understanding the guarantee. Others include failing to negotiate the terms, assuming the guarantee ends when the business relationship does, or not seeking legal review. The consequences are severe: lawsuits, judgments, and even wage garnishment. If you’re asked to sign a personal guarantee, don’t rush. Review every document, negotiate where possible, and consult a Florida business attorney before you commit. Deadlines to respond to lawsuits can be as short as 20 days—don’t wait until you’re served to get help.
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Disclaimer: This content is for informational purposes only and does not constitute legal advice, and laws and legal interpretations may change after the date of publication.
Written by:
Gil Sánchez, Esq.
CEO | Civil Trial Attorney
Black Rock Trial Lawyers
Abogados Law
