What is a guarantor?

Definition of a guarantor?

A guarantor is a person or organisation that promises to pay back a borrowed amount of money if the person or organisation that borrowed it can’t pay it back.

A guarantor could be a family member, friend, co-worker or someone who meets the legal age to sign a particular contract. A guarantor is expected to have a sufficient income to cover the loan, as well as a good credit history.

Some types of situations that could require a guarantor include:

  • renting property
  • taking out a bank loan
  • borrowing with poor credit history

Got questions? Ask Emily!

FreeAgent's Chief Accountant Emily Coltman is available to answer your questions in the comments.

Bookkeeping and tax tips

We are committed to keeping your information safe. Read our privacy policy to find out more.

Are you an accountant or bookkeeper?

Find out more about FreeAgent for your practice.