Lawyers personal guarantees for leases

Question: When I started, I had to give a personal guarantee. Now that I’m established, can my personal guarantee be withdrawn?

When you entered into your space lease, your landlord may have demanded a personal guarantee. Perhaps it was a sellers’ market at the time and you had to accede to the demand in order to rent your space for your law firm. Since then, however, your law firm has become more profitable. Now, you ask, can we retrieve our personal gurarantee?

The answer is: Maybe.

Like many negotiations, however, you may not be the best person to argue your own case. More likely, you will be better advised to have someone argue on your behalf. For example, your accountant knows all the facts and figures, has the professional credentials to get the attention of your landlord and can argue your case without emotion.

Getting released from personal guarantees certainly would be worth your consideration.

Categorized in: Cash Flow - Finances