If a transaction is unsecured what might a creditor request in exchange for offering a line of credit?

Question

Quizplus · Accepted Answer

A personal guaranty is often requested by creditors when a transaction is unsecured. This means that an individual (usually the business owner) promises to be personally responsible for the debt if the business cannot pay. This provides the creditor with an additional layer of security without requiring collateral.

If a Transaction Is Unsecured What Might a Creditor Request