"When you agree to extend credit to a business, you expect to be paid. In many cases, especially for small and mid-sized companies, you aren’t basing your decision just on the business itself. You’re also relying on a personal guarantor, typically an owner or executive, to fulfill the debt obligation if the company cannot.
Go through this pdf to know more: https://www.edocr.com/v/w4xllv5w/commandcredit2/the-hidden-risks-of-ignoring-guarantor-credit-chec