Financial Guarantee Letter

A letter of financial guarantee, also called a guarantor letter, is a document provided by a bank or individual to a company or institution on behalf of another person. It guarantees payment for products or services and acts as an assurance that agreed-upon financial obligations will be met.

If the letter is being sent as a hard copy, then it should be in the proper business format, otherwise, if the letter is being emailed, it should have an appropriate subject line and proper grammar.


How to Write
Steps
  1. State who you are guaranteeing and your relationship
  2. State what your guarantee will cover with specific dollar amounts.
  3. Include information on your financial well being including referencing related attachments/enclosures.
  4. Provide your contact information.

Tips

Sample Letter

Financial Guarantee Letter
Dear Home Sweet Home Realty,

I am contacting you regarding Mr. Bob Leadon, who recently applied to lease an apartment in your complex at 144 Easy North Street. Mr. Leadon and I have been business partners for ten years and will be sharing the expenses of this apartment as it will be acting as a temporary office space.

I will be co-singing the lease for the apartment and agree to be liable for the full $750 per month rent payment, including the initial upfront payment for the first month of occupation should Mr. Leadon be unable to pay. As per the terms of the lease, please find included with this letter a brief summary of our recent business income. You will see that our company is lucrative and is more than capable of providing the required rent money each month.

I, George Juniper, hereby officially agree to guarantee and be liable for full rent payment at 144 Easy North Street in Funtown, PA for the terms of the lease signed by myself and Bob Leadon. This guarantee will remain in effect until July 31st, 2014 or until the lease is terminated.

Feel free to contact me if you require any other information.

Sincerely,

[Signature]

George Juniper


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