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I always skipped the personal guarantee clause on small jobs until a $3,800 unpaid invoice in Reno proved why I shouldn't
For a while I figured a personal guarantee was overkill on little jobs, like who's really going to chase someone down over a few grand. Then a contractor I did bookkeeping for in Reno got stiffed on a $3,800 invoice when the LLC just dissolved and the owner walked away clean. I read the contract myself and sure enough there was no guarantee language, nothing tying him personally to the debt, so he ate the whole thing. Now I actually slow down and read that section instead of skimming past it, and I ask what happens if the business folds mid payment. Has anyone here actually used a guarantee to collect from a small client, or does it just spook them into walking?
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hunt.jennifer17h ago
Yeah I used to skip that part too, not anymore.
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