Owner's Personal Guarantee of Merchant's Performance of Merchant Contractual
Covenants. Owner personally guarantees the performance of all of the covenants of Merchant in this
Agreement, specifically including the Merchant Contractual Covenants above. (Owner does not
absolutely guarantee that sufficient future receivables will be generated or Proceeds collected to equal the Specified Amount sold to Company.).
Is this a 100% Personal Guarantee??? Will it effect my credit?
Merchant’s Contractual Covenants and Representations; Further Inquires.
Covenants. You agree:
(i)
Not to materially change the nature of the business that you conduct from the type of business
originally disclosed to us in connection with this Agreement and, unless we are adequately notified in
advance, to conduct your business substantially in accordance with past practices;
(ii)
To take all steps necessary to provide us with access to view the activity in your Business Payment
Account, Bank Account and marketplaces where you do business and to such other accounts and
sales and shipping data as we deem necessary and appropriate, for the purpose of monitoring your
business activity and finances;
(iii)
Not to reduce or remove, or cause anyone to reduce or remove, our access, once granted, to your
Business Payment Account, Bank Account, marketplaces where you do business and such other
accounts and sales and shipping data as we have deemed necessary and appropriate;
(iv)
With regard to information about any marketplace or other service provider that you provided to us
to determine the amount of your Loan, to notify us promptly if the details of your account with
such marketplace or other service provider changes, you open a new account or you close your
account
(v)
To use your Business Payment Account in a volume consistent with the level of transactions you
processed through such account(s) when you received your Loan, or otherwise ensure that funds
sufficient to satisfy your obligations under this Agreement are deposited into your Bank Account;
(vi)
To maintain a minimum balance in your Business Payment Account or Bank Account, as
appropriate (as required by Section 1.3 below);
(vii)
To collect on your sales promptly, in compliance with all applicable federal, state and local laws,
rules and regulations and consistent with your past collection practices;
(viii)
(ix) To make payments to us (in U.S. dollars) on the applicable Payment Due Date"
Not to take any action to discourage the use of your Business Payment Account and not to permit
any event to occur that could have an adverse effect on the use, acceptance or authorization of your
Business Payment Account for the purchase of services and/or products by your customers;
(x)
Not to open a new account other than the Business Payment Account or Bank Account
(collectively, the "Accounts") into which your sales will be deposited and not to take any action to
cause future sales to be settled or paid to any account other than the Accounts;
(xi)
Not to sell, dispose, convey or otherwise payment your business or assets without our express prior
written consent and the prior payment or assumption of all of your obligations under this Agreement
pursuant to documentation reasonably satisfactory to us;
(xii)
Not to take any intentional action that would substantially impair or reduce your generation or
collection of accounts receivable adequate to satisfy your obligations under this Agreement without
our prior written permission;
(xiii)
Not to terminate your authorization of scheduled debits in Section 1.3, stop payment on any debit
authorized pursuant to Section 1.3, claim that a debit transaction pursuant to Section 1.3 is
unauthorized, or seek a refund, return, chargeback or dispute of a credit card transaction related to a
payment under Section 1.3; and
(xiv)
To notify us promptly if, with regard to any Business Payment Account or Bank Accoount, the
details of your account change, you open a new account or you close your account.
PayPal working capital asks for SSN but does not personally guarantee
What about this
What does that mean
(Owner does not
absolutely guarantee that sufficient future receivables will be generated or Proceeds collected to equal the Specified Amount sold to Company.).
What about this
What does that mean
(Owner does not
absolutely guarantee that sufficient future receivables will be generated or Proceeds collected to equal the Specified Amount sold to Company.).
I Know for a fact... Paypal doesnt check credit... and specifically says NO PERSONAL GUarantee
It is strictly under the business (completely under the EIN) the SSN is only for the patriot act
I beleive that is what kabbage is for too...and i think they 'scare' by pulling a guarantors credit history...just to make sure there is some reliability to the company... but not PG
I have a Kabbage loan that went 90 days past due in feb and they put me on an extended payment option of 795/mo for 18 months... but even that the business is having trouble with right now...
The loan documents say Owner PG the business will abide the covenants... but is NOT an absolute guarantee
I think the SSN is just a scare tactic... or if I had borrowed 50 grand and closed the next day they could go after me...but since the business just cant afford it based on low revenue right now... its on the business not me
The PG is only for Fraud it sounds like
Check out this link
http://fitsmallbusiness.com/kabbage-vs-on-deck-captial-vs-paypal/
It says Kabbage is NOT a PG
Mine started at 20,000 then after 3 months it bumped up to 80K
I dont like the MONTHLY payment thing... and only 6 months to repay
I wish they offered 12 month options
It basically comes out to 30% APR
I wish they offered 12 month options
It basically comes out to 30% APR